US-based Qualcomm Inc invests ₹730 crores in Jio platforms, makes it 13th Deal in 12 Weeks
Reliance Jio Platforms, which competes with Bharti Airtel and Vodafone Idea in India, has disrupted the Indian telecommunications market by offering cut-rate voice and data plans. It has amassed nearly 400 million subscribers to become the top carrier in the world’s second-largest internet market in less than four years of its existence.
Qualcomm Inc will invest Rs 730 crore in Jio Platforms in exchange for a 0.15 percent stake, joining a pack of big-ticket investors that have grabbed a piece of the digital unit of Reliance Industries (RIL). The deal with Qualcomm is the 13th such investment in 12 weeks, which means Reliance has sold 25.24 percent in Jio. RIL has now raised Rs 118,318.45 crore in total from some of the world’s leading tech investors.
Facebook had bought a 9.99 percent stake for Rs 43,574 crore on April 22. Reliance has since sold stakes in Jio to global investors such as General Atlantic, KKR, Saudi sovereign wealth fund, Abu Dhabi state fund, Saudi Arabia’s PIF, and Intel.
Qualcomm, one of the world’s top wireless technology companies, is the third strategic investor in Jio after Facebook Inc and American semiconductor giant Intel. The RIL unit runs the telecom enterprise Jio Infocomm, India’s biggest, as well as movies, news, and music apps.
In a regulatory filing, Reliance on Saturday said it has closed the sale of 6.13 percent stake in Jio Platforms with L Catterton, The Public Investment Fund, Silver Lake, and General Atlantic. Thanks to Ambani’s deals, India has emerged as a hot-spot for M&A this year, accounting for more than 12% of those announced in the Asia Pacific is the highest ratio since at least 1998, Bloomberg reported.
Here are all the 13 deals Jio platforms bagged in the last 12 weeks
The California-based company invested $5.7 billion (Rs 43,574 crore) into Jio Platforms for a 9.9 percent stake in the company. The transaction, announced on April 22, is the largest of the six investments. It was also Facebook’s biggest bet since it acquired messaging platform WhatsApp in 2014. The deal also made Facebook the largest minority shareholder in Jio Platforms.
Silver Lake deal
Silver Lake Partners acquired a 1.15 percent stake in Jio Platforms for Rs 5,655.75 crore ($750 million).
Vista Equity Partners bought a 2.32 percent stake in Jio Platforms for Rs 11,367 crore.
General Atlantic deal
Private equity firm General Atlantic picked up a 1.34 percent stake in Jio Platforms for 6,598.38 crores.
KKR acquired a 2.32 percent stake in Jio Platforms for Rs 11,367 crore, similar to the deal made with Vista Equity Partners.
The deal with the Abu Dhabi-based sovereign investor announced on June 5, valued Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. Facebook ‘s investment had valued Jio Platforms at a pre-money enterprise value of Rs 4.62 lakh crore ($65.95 billion).
Silver Lake deal 2.0
Silver Lake will invest an additional Rs 4,546.8 crore in Jio Platforms for 0.93 percent stake. The aggregate investment by Silver Lake is now Rs 10,202.55 crore for a 2.08 percent stake in Jio Platforms.
Abu Dhabi Investment Authority (ADIA) will pump Rs 5,683.5 crore into Jio Platforms. ADIA’s investment at an equity valuation of Rs 4.91 lakh crore and enterprise valuation of Rs 5.16 lakh crore.
TPG Capital deal
TPG’s investment in Jio is Rs 4,546.80 crore for a 0.93 percent stake assigning it an equity valuation of Rs 4.91 lakh crore and an enterprise valuation of Rs 5.16 lakh crore.
L Catterton deal
L Catterton will invest Rs 1,894.50 crore in exchange for a 0.39 percent stake in Jio Platforms, a record tenth investment in the Reliance Industries (RIL) digital unit in seven weeks.
Saudi Arabia’s PIF, one of the world’s largest sovereign wealth funds, will invest Rs 11,367 crore for 2.32 percent of Jio Platforms.
The American semiconductor giant, Intel, said that it will invest Rs 1,894.5 crore in Jio Platforms for a 0.39 percent stake.
Qualcomm Inc will invest Rs 730 crore in Jio Platforms in exchange for a 0.15 percent stake, joining a pack of big-ticket investors that have grabbed a piece of the digital unit of Reliance Industries (RIL).
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