Reliance strikes fifth deal to sell 2.32 per cent stake to KKR
INDIA’s Reliance Industries Limited (RIL) on Friday (22) announced the sale of a 2.32 per cent stake in its digital unit to US private equity giant KKR for $1.50 billion, the fifth deal in four weeks that will inject a combined $10.35bn in the oil-to-telecom conglomerate to help it pare debt.
This is KKR’s largest investment in Asia. ‘… This is KKR’s largest investment in Asia and will translate into a 2.32 per cent equity stake in Jio Platforms on a fully diluted basis,’ the company said in a statement.
‘Over the last month, leading technology investors, such as, Facebook, Silver Lake, Vista, General Atlantic and KKR have announced aggregate investments of $10.35 bn into Jio Platforms,’ it said.
Diverse marquee investors are becoming long-term shareholders of Jio Platforms Ltd (JPL) because of a unique set of technologies and platforms under one entity.
There are no similar opportunities available anywhere else globally. And an endorsement of the quality of the management. Investments by leading global growth investors will enable Jio to scale its ecosystem and reaffirm the firm as a next generation software product and platform company.
‘Jio Platforms, a wholly-owned subsidiary of Reliance Industries, is a next-generation technology platform focused on providing high-quality and affordable digital services across India, with more than 388 million subscribers,’ the statement said.
India has been a key strategic market for KKR with a history of investing in the country since 2006.
KKR, he said, has a proven track record of being a valuable partner to industry-leading franchises and has been committed to India for many years.
‘We are looking forward to leveraging KKR’s global platform, industry knowledge and operational expertise to further grow Jio.’
Henry Kravis, Co-Founder and Co-CEO of KKR, said: ‘We view this landmark investment as a strong indicator of KKR’s commitment to supporting leading technology companies in India and Asia Pacific.’