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Jio-Mubadala deal for 1.85% Stake in Jio Platforms: All you need to know

Mubadala Investment Company has tied-up with Reliance Jio to buy 1.85% stake in Jio Platforms. Know highlights of Jio-Mubadala deal here.

Jun 5, 2020 18:46 IST
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Jio-Mubadala deal: Abu Dhabi-based firm, Mubadala Investment Company has recently invested into Reliance Jio Platforms to acquire 1.85 percent stake in the company. Under this deal, Mubadala will be investing Rs 9,093.60 crore into Jio Platforms., the telecom branch of Mukesh Ambani-led Reliance Industries Limited (RIL).

The Jio-Mubadala deal awaits regulatory and customary approvals. It is the sixth such deal in last 1.5 months. The other five deals were carried out with Facebook, Silver Lake, General Atlantic, Vista Equity Partners and KKR.

Key Takeaways from Mubadala-Reliance Jio deal

- To carry out this deal, Reliance Industries hired the Morgan Stanley as financial advisor and took legal counsel of AZB & Partners and Davis Polk & Wardwell.

- With this deal and previous five ones, Reliance Jio receives a total investment of Rs 87,655.35 crore.

- The deal now values Jio Platforms at Rs 4.91 lakh crore in terms of equity and Rs 5.16 lakh crore in enterprise value.

How stake sale will be beneficial for Reliance Industries?

The stake sales will enable the Reliance Industries in achieving its zero-net debt by March 2021. In March 2020, RIL had Rs 3.36 lakh crore outstanding debt and Rs 1.75 lakh crore cash in hand, leading to its net debt of Rs 1.61 lakh crore.

About Mubadala Investment Company

  • Mubadala Investment Company was established in 2017 as an investment firm for Abu Dhabi and has now its presence worldwide across various sectors. It has made investments in over 50 countries.
  • The Abu Dhabi company has a wide portfolio that includes manufacturing, metals & mining, semiconductors, pharmaceutical & medical technology, and so much more.
  • Headquartered in Abu Dhabi, Mubadala has offices Moscow, Rio de Janeiro, New York and San Francisco.
  • It is the 2nd largest state investor after the Abu Dhabi Investment Authority.

Highlights of Six Investment deals in Jio Platforms

Company

 Stake

Investment Value

Facebook

 9.99% stake

Rs 43574 crore

General Atlantic

 1.34% stake

Rs 6,598.38 crore

Vista Equity Partners

 2.32% stake

Rs 11,367 crore

Silver Lake

 1.15% stake

Rs 5,655.75 crore

KKR

 2.32% stake

Rs 11,367 crore

Mubadala

 1.85% stake

Rs 9,093.60 crore

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