Silver Lake doubles its stake on India's Reliance Jio Platforms. The US private equity firm announced on Friday that it would purchase an additional $ 600 million stake in India's leading telecommunications operator, which is at the height of a global pandemic in less than two months, at $ 12.2 billion Has collected US dollars.
The company, headquartered in Menlo Park, which had invested nearly $ 750 million in Reliance Jio Platforms last month, said the additional infusion would increase its stake in the Indian company from 1.15% to 2.08%.
Silver Lake's new investment is Reliance Jio's seventh deal Platforms, a subsidiary of India's most valuable company (Reliance Industries), has secured itself in just as many weeks by selling almost 20% of the shares. On Friday (local time), Abu Dhabi-based sovereign company Mubadala announced it would invest $ 1.2 billion in Jio, a company run by Mukesh Ambani, India's richest man. Facebook, KKR, General Atlantic and Vista are the other investors who have issued checks to Jio Platforms.
The announcement underscores the appeal of Jio Platforms, which has accumulated more than 388 million subscribers in less than four years, for 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 .
Egon Durban, Co-CEO and Managing Partner at Silver Lake, said the recent investment momentum in Reliance Jio Platforms “confirms a compelling business model and underlines our admiration for Mukesh Ambani. his team and their brave vision of building and building one of the most remarkable technology companies in the world. "
"We are excited to increase our engagement and involve more of our co-investors in this opportunity and support Jio Platforms in its mission to provide high-quality and affordable digital services to a mass consumer and small business," he added.
Silver Lake together manages nearly $ 40 billion in assets and committed capital and has invested in dozens of technology companies over the years, including Unity, the video game engine maker, Skype audio and video communications service, Gartner consulting firm, Alibabas Ant Financial and the computer giant Dell and the Chinese hail giant Didi Chuxing.
Ambani is raising capital, at least in part, to reduce its oil and retail giant Reliance Industries' net debt from approximately $ 21 billion to zero in early 2021, a promise he had previously given to shareholders, said Mahesh Uppal, director of communications consultancy Com First. The company was debt-free in 2012, but took out loans to fund the creation of Jio platforms.
"I would like to emphasize that Silver Lake's additional investment in Jio Platforms within five weeks of the COVID-19 pandemic is a strong confirmation of the inherent resilience of the Indian economy, which will certainly increase with full digital activation," Ambani said in an explanation.