RIL agrees to sale 0.39% stake of Jio to Intel

Billionaire Mukesh Ambani owned petrochemical to telecom giant Reliance has agreed to sale part of its stake of digital platform Jio to Intel Capital.
The deal worth Rs 1,894.50 crore will allow Intel Capital, the investment arm of global tech and semiconductor major Intel corporation, to pick up 0.39% equity stake in Jio Platform.
This is eleventh investment RIL has secured for telecom and digital business in about two months.
Intel’s investment will take the total investments in Jio Platforms to Rs 117,588.45 crore for 25.09% holding. The latest investment pegs Jio Platforms’ equity value at RS 4.91 lakh crore and an enterprise value of RS 5.16 lakh crore.

Jio Platforms houses RIL’s telecom business under Reliance Jio Infocomm, the largest in the country with nearly 400 million subscribers, besides other digital properties and investments.
Intel Capital invests globally in innovative companies with a focus on disruptive technology areas like cloud computing, artificial intelligence and 5G – opportunities where Jio is also innovating and investing for growth.
Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners and Davis Polk & Wardwell acted as legal counsels.

Prior to this, Jio Platforms raised money from 10 global entities for 24.70% stake for Rs 1.16 lakh crore. These investments, along with Rs 53,124 crore from a rights issue, have made RIL debt free.
The other investors include Facebook, Abu Dhabi’s two largest sovereign investment arms, Abu Dhabi Investment Authority and Mubadala, along with private equity firms Silver Lake, Vista Equity Partners, General Atlantic, KKR, TPG, L Catterton and Saudi Arabia’s Public Investment Fund (PIF).
About 8 days ago, the Competition Commission of India (CCI) approved Facebook’s purchase of a stake in Jio Platforms for Rs 43,574 crore

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