Saudi wealth fund PIF invests ₹11,367 cr in Jio Platforms
nMUMBAI: Saudi Arabia’s sovereign wealth fund, Public Investment Fund or PIF, on Thursday, announced an investment of ₹11,367 crore in Jio Platforms Ltd, the digital assets unit of Reliance Industries Ltd.
With this investment, Jio Platforms has raised about ₹1.16 trillion from 11 investors in just eight weeks, signifying the rapid digitisation opportunity in India and emergence of latest technologies such as AI, Blockchain, AR/VR, Big data for individuals and businesses.
Starting with Facebook’s ₹43,574 crore investment announced on April 22, Jio Platforms has secured investment commitment from a number of large global private equity players including Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton and now PIF.
The PIF deal takes the total acquisition commitment by foreign investors in Jio Platforms at 24.71%.
The deals are aimed at helping RIL become net debt-free by March 2021. RIL, as on December 31, had net debt of ₹1.53 lakh crore.
However, the actual inflow of investment money from the deals announced so far is likely to hinge on the Indian regulators’ approval on the partnership proposed between Facebook and Jio Platforms, which is being examined by antitrust authority, Competition Commission of India.
Facebook, with over 300 million customers in India and Jio
Platforms with about 388 million, plan to tap their combined user base to extend digital payments and e-commerce services in the country.
Facebook’s messaging platform Whatsapp, which has about 450 million users, also plans to partner Jio Platforms to enable customers in India order household items from neighbourhood groceries at their doorsteps using the Jiomart platform.
The PIF deal values Jio Platforms at ₹4.91 lakh crore, like the previous deals. It will give PIF a 2.32% stake in Jio Platforms.
“We at Reliance have enjoyed a long and fruitful relationship with the Kingdom of Saudi Arabia for many decades,” said Reliance Industries Ltd’s chairman Mukesh Ambani.
nBENGALURU:A slew of venture capital firms and internet startups, including South African internet giant Naspers Ventures, is planning to appeal to India’s anti-trust regulator over data sharing and misuse concerns in Facebook Inc.’s ₹43,574 crore investment in Jio Platforms Ltd, said three people aware of the development.
The appeal is yet to be filed before the Competition Commission of India (CCI), even as the Facebook-jio deal is currently under scrutiny by the latter, pending approval.
couldn’t ascertain the identity of the other VC and Internet firms said to be involved in the petition.
Naspers perceives that the Facebook-jio deal may competitively impact some of its portfolio firms, said two of the people cited above.
Naspers wants CCI to look into data-sharing arrangements between Jio and Facebook, since India lacks a comprehensive data security and sharing regulation, they said.
nMUMBAI:HONG Kong-based special situations fund SSG Capital has assured Altico Capital that it will retain all jobs after the buyout and does not see the ongoing the China-india tussle thwarting the deal, said three people aware of the development.
Employees have written to the Reserve Bank of India (RBI) after SSG Capital said it will retain jobs, saying that they have no problem with the deal, contrary to their earlier letter in April, said these people, on condition of anonymity.
“In the new letter, employees have said that they are in favour of the deal,” said one of the persons mentioned above.
Altico Capital voted in favour of the resolution plan proposed by SSG Capital, reported on March 12.
SSG Capital had offered ₹2,750 crore upfront for the non-banking financial company (NBFC), but planned to sell its loans and close it down later. The other contender, private equity firm Cerberus Capital, had offered ₹2,500 crore upfront, security receipts (SRS) of ₹400 crore redeemable in three years and ₹1,000 crore as equity infusion.
SSG Capital held a call with the Altico Capital management team
IN THE NEW LETTER TO THE RBI, EMPLOYEES OF ALTICO HAVE SAID
THAT THEY ARE IN FAVOUR OF THE DEAL
earlier this week, according to the other person cited above. From the discussions on the call, it has emerged that the deal is on track and lawyers will soon prepare the document for a change of control at the NBFC, the second person said.
“The company will send the document to RBI by next week for its approval. There was a concern among employees that the deal could either be delayed or face other hurdles because of the India-china conflict and the issue of FDI from neighbouring countries,” he said.
The government on April 22 issued a notification under the Foreign Exchange Management Act, which required investments originating from seven neighbouring countries including China, to seek prior approval of the government.