KKR-Reliance Jio Deal: New York-based Private equity firm KKR has announced to invest Rs 11367 crore or USD 1.5 billion in Jio Platforms for a stake of 2.32%. The deal will be finalised after it get regulatory and customary approvals. This is fifth such investment in Reliance Jio followed by Facebook, Silver Lake, Vista Equity Partners and General Atlantic. More such deals can be expected in future.
With this fifth deal, Jio Platforms has a total investment of Rs 78,562 crore. The Reliance Industries is majorly comprised of telecom business under Reliance Jio Infocomm having over 388 million subscribers. Other Jio Platforms are Jio Saavn, Jio Cinema, and Haaptik.
Key Facts of KKR-Reliance Jio Deal
- The KKR-Reliance Jio Deal values the Jio Platforms at Rs 4.91 lakh crore equity value.
- The enterprise value of Jio Platforms is estimated at Rs 5.16 lakh crore post this deal.
- The deal will give KKR a in Reliance Jio on a fully diluted basis.
- This is the largest investment of KKR in Asia
- KKR's investment will be made from its Asia private equity & growth technology funds.
Financial & Legal Advisors of Jio & KKR
To carry out this deal, Jio & KKR hired legal counsel and financial investors to ensure that the deal fulfills all terms and conditions. Have a look at the advisors of both the sides:
| Category | Reliance Industries | KKR |
| Financial Advisor | Morgan Stanley | Deloitte Touche Tohmatsu India LLP |
| Legal Counsel | AZB & Partners Davis Polk & Wardwell | Shardul Amarchand Mangaldas & Co. Simpson Thacher & Bartlett LLP |
Benefits of KKR-JIO Deal
Digital India: KKR supports the goal of Reliance Industries to build Digital Society in India. The equity firm will help transform digital ecosystem of India.
Highlights of Five Investment deals with Reliance Jio Platforms
| Company Name | Investment Value | Stake |
| | Rs 43574 crore | 9.99% stake |
| General Atlantic | Rs 6,598.38 crore | 1.34% stake |
| Vista Equity Partners | Rs 11,367 crore | 2.32% stake |
| Silver Lake | Rs 5,655.75 crore | 1.15% stake |
| KKR | Rs 11,367 crore | 2.32% stake |
About KKR
- Headquartered in New York, KKR was founded in 1976 by George Roberts and Henry Kravis.
- Since its inception, KKR has made investment of more than USD 30 billion in technological companies.
- KKR's technology portfolio includes over 20 companies from sectors like telecom, technology and media.
- Some of key investments of KKR include ByteDance, BMC Software and GoJek.
- KKR has been strategically investing in India since 2006.
- KKR’s alternative credit business in India is carried out through KKR India Financial Services (KIFS), Mumbai.
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