NEW DELHI: Abu Dhabi-based sovereign investor Mubadala Investment Company will buy 1.85% stake in Mukesh Ambani's Jio Platforms for ₹9,093.60 crore, the Reliance Industries Ltd subsidiary said in a release on Friday. The latest transaction gives Jio Platforms an equity valuation of Rs4.91 trillion and an enterprise value of Rs5.16 trillion, the same pricing at which private equity giant KKR bought a 2.32% stake in Jio, the last deal, declared on 22 May.
The Mubadala transaction is the six stake sale announced by Jio in less than seven weeks. With the latest deal, Jio has raised Rs87,655.35 crore by selling 18.97% of its stake to six investors that also include Facebook, Silver Lake, Vista Equity Partners and General Atlantic.
The first and the largest stake sale out of the six was that of 9.99% to Facebook for Rs43,573.62 crore, announced on 22 April.
All the six transactions are subject to regulatory approvals, with the one with Facebook likely to undergo a tighter scrutiny given concerns over net neutrality.
Reliance Jio Infocomm , which provides connectivity platform to over 388 million subscribers, will continue to be a wholly-owned subsidiary of Jio Platforms.
The stake sales are part of RIL's plan to be debt-free by March. Most likely, the target is likely to be achieved before that, the company having mopped up Rs53,124 crore from a rights issue that closed on 4 June.
Of the Rs43,574 crore that it will receive from Facebook, Jio plans to use Rs28,000 crore to redeem optionally convertible preference shares (OCPS) of its parent RIL and retain Rs15,000 crore in its books, Jio's top management had said in a conference call on 22 April.
Mubadala’s Ventures business currently manages several venture funds in the US, Europe and Middle East.
Mubadala’s portfolio spans advanced manufacturing, semiconductors, metals & mining, pharmaceutical and medical technology, renewable energy and utilities, and the management of diverse financial holdings.
Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners, and Davis Polk & Wardwell acted as legal counsel.