- 09 Jan 2021
Silver Lake, a private equity firm and global leader in technology investment, will be investing Rs. 5655.75 Cr in Jio Platforms. The announcement came days after the mega deal of Rs. 43574 Cr between Facebook and Jio Platforms. The investment from Silver Lake, at a 12.5 percent premium to the equity valuation of the Facebook deal, will give it slightly more than a 1 percent stake in Jio Platforms.
Image Source: RIL
A media release from RIL stated that,“Silver Lake will invest ₹ 5655.75 Cr into Jio Platforms. This investment values Jio Platforms at an equity value of ₹ 4.90 lakh crore and an enterprise value of ₹ 5.15 lakh crore and represents a 12.5% premium to the equity valuation of the Facebook investment announced on April 22, 2020”.
Image Source: RIL
The Media release mentioned that the partnership with Silver Lake has special significance amid the COVID-19 pandemic crisis, and will boost the goal of comprehensive digitization of the Indian Economy. It also stated that the investment is further testament to the world-class digital platform that Jio has built. This digital platform is powered by leading technologies such as broadband connectivity, Smart devices, Cloud and Edge computing, Big Data Analytics, Artificial Intelligence, Internet of Things, Augmented and Mixed Reality and Blockchain.
Mr. Mukesh Ambani, CMD, Reliance Industries Ltd, said, “I am delighted to welcome Silver Lake as a valued partner in continuing to grow and transform the Indian digital ecosystem for the benefit of all Indians. Silver Lake has an outstanding record of being a valuable partner for leading technology companies globally. Silver Lake is one of the most respected voices in technology and finance. We are excited to leverage insights from their global technology relationships for the Indian Digital Society’s transformation”.
Mr. Egon Durban, Silver Lake Co-CEO and Managing Partner, said, “Jio Platforms is one of the world’s most remarkable companies, led by an incredibly strong and entrepreneurial management team who are driving and actualizing a courageous vision. They have brought extraordinary engineering capabilities to bear on bringing the power of low-cost digital services to a mass consumer and small businesses population. The market potential they are addressing is enormous, and we are honored and pleased to have been invited to partner with Mukesh Ambani and the team at Reliance and Jio to help further the Jio mission”.
Media release from RIL also mentioned that “The transaction is subject to regulatory and other customary approvals. Morgan Stanley was the financial advisor to Reliance Industries and AZB & Partners and Davis Polk & Wardwell acted as legal counsels”.
Silver Lake is global leader in technology investing, with approximately $40 billion in combined assets under management and committed capital. Silver Lake has made investments in Airbnb, Alibaba, Ant Financial, Alphabet’s Verily and Waymo units, Dell Technologies and Twitter in recent past.