Abu Dhabi-based state-owned company Mubadala is the youngest investor in Mukesh Ambani's Reliance Jio Platforms and has joined five American companies, including Facebook and Silver Lake, which, at the height of a unique global company, secured pandemics in India's largest telecommunications operator.
Mubadala agreed to invest $ 1.2 billion in Reliance Jio Platforms for a share of 1.85% in the company. The deal valued the Indian telecommunications operator, which started in the second half of 2016, at $ 65 billion.
A subsidiary of Reliance Industries, Reliance Jio Platforms is the most valued company in India, whose core business is in oil refining and petrochemicals. In the past seven weeks, Reliance Jio Platforms has raised $ 11.5 billion by selling 19% of the shares.
“Through my longstanding relationship with Abu Dhabi, I have personally seen the impact of Mubadala's work on the diversification and global networking of the UAE's knowledge economy. We look forward to benefiting from Mubadala's experience and insights from supporting growth trips around the world, ”said Mukesh Ambani. The chairman and CEO of Reliance Industries said in a statement.
Today's announcement further demonstrates the attractiveness of Jio Platforms to foreign investors looking for part of the world's second largest Internet market. Media reports have claimed over the past few weeks that Amazon is considering buying shares in Bharti Airtel, India's third largest telecommunications operator, worth at least $ 2 billion, while Google has had talks about a similar deal with Vodafone Idea, the second largest telecommunications operator .
India has become one of the largest global battlegrounds for Silicon Valley and China companies looking to attract the country's 1.3 billion people, most of whom remain without a smartphone or internet connection.
Khaldoon Al Mubarak, Managing Director and Group Chief Executive of Mubadala Investment Company, said: “We have seen how Jio has already changed communication and connectivity in India, and as an investor and partner, we are committed to supporting India's digital growth. With the network of investors and partners from Jio, we believe that the platform company will drive the development of the digital economy. "
Mubadala, with more than $ 229 billion in assets, is also an investor in AMD and Alphabet & # 39; s Waymo, as well as in SoftBank.
The new capital was intended to help Ambani, India's richest man, further strengthen his commitment to investors when he promised to reduce Reliance's net debt from about $ 21 billion to zero in early 2021 – partly due to the investments it made Mahesh Uppal, director of Com First, was involved in the construction of Jio platforms.
The core business – oil refining and petrochemicals – was hard hit by the corona virus outbreak. Net income for the quarter ended March 31 declined 37%.