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Private Equity giants “Silver Lake” buys 1% stake in Reliance Jio for $750 million



Mukesh Ambani
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Just a few days ago, social networking giants Facebook made a $5.7 Billion investment in Reliance Jio to buy out 9.99% of their stake. This deal sent shockwaves across the business world and has been a major talking point, as both these giants are keen on revolutionizing the retail industry of the country by connecting with over 60 million small business owners.

American Private Equity giant Silver Lake are the newest members to shell out expansive money on Reliance Jio, buying a stake worth $750 Million (INR 5,655.75 Crore). Interestingly, this deal struck by Silver Lake is 12.5 premium to the value struck by Facebook for their deal. Silver Lake is a name that needs no introduction in the business world, having hogged the limelight since acquiring Dell Inc along with Michael Dell.

With this newly struck deal, Reliance Jio’s valuation moves to 5.15 Lakh Crore ($68 Billion). With the Facebook deal, the company valuation stood at INR 4.62 Lakh Crore and it’ll be interesting to see where further developments with regard to Jio, the Reliance subsidiary which is attracting major investment from around the world.

With 340 million customers under his belt, Jio is India’s biggest mobile network and is only bound to grow bigger. It has attracted some of the biggest names around the world after Mukesh Ambani invested nearly $40 Billion in bringing Jio into the picture in 2016. Ever since it managed to create havoc in data plans and revolutionized internet usage in the country.

Jio attracting major interest from many investors

A few days after the Facebook deal was struck, Reliance came up with a statement suggesting there could be more significant investments coming from other major investors in the world.  “In addition to the Facebook investment, the Board was informed that RIL has received strong interest from other strategic and financial investors and is in good shape to announce a similar-sized investment in the coming months,” a statement was issued from the organization.

It is also being said that these deals will help Reliance Industries Limited cover-up for their losses, especially with the meteoric fall in crude oil prices. Now that the company believes many such investments are about to hit the organization in the coming months, it only makes things more interesting in the world of business.