TPG to buy 0.9% stake in Jio Platforms for Rs 4,546.80 crore

NEW DELHI: US Private equity firm TPG is set to invest Rs 4,546.80 crore in Jio Platforms for a 0.93% stake. This is the eighth investor to pick up stake in the Reliance Industries’ (RIL) telecom and digital business in seven weeks.

The investment pegs Jio Platforms’ equity value at Rs 4.91 lakh crore and enterprise value at Rs 5.16 lakh crore. With the latest tranche, parent Reliance Industries stands to get Rs 102,432.45 crore from the eight investors in exchange for 21.99% stake, the group said in a statement Saturday. “

“Today, I am happy to welcome TPG as valued investors in our continued efforts towards digitally empowering the lives of Indians through the creation of a digital ecosystem. We have been impressed by TPG’s track record of investing in global technology businesses which serve hundreds of millions of consumers and small businesses, making the societies we live in better,” Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said in the statement.

TPG is a leading global alternative asset firm founded in 1992 with more than $79 billion of assets under management across a wide range of asset classes, including private equity, growth equity, real estate and public equity. Its investments in global technology companies include Airbnb, Uber, and Spotify, among others.

TPG is making the investment from its TPG Capital Asia, TPG Growth, and TPG Tech Adjacencies (TTAD) funds.

“We are excited to partner Reliance to invest in Jio. As an investor in growth, change, and innovation for over 25 years – and with a longstanding presence in India — we are excited to play an early role in Jio’s journey as they continue to transform and advance India’s digital economy. Jio is a disruptive industry leader that is empowering small businesses and consumers across India by providing them with critical, high-quality digital services,” Jim Coulter, Co-CEO TPG, said in the statement.

“The company is bringing unmatched potential and execution capabilities to the market, setting the tone for all technology companies to come,” he added.

The transaction is subject to customary conditions precedent.

Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners and Davis Polk & Wardwell acted as legal counsels. Shardul Amarchand Mangaldas & Co. acted as legal counsel for TPG.





[Source – Economic Times]

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