During May 2020, many prominent investors from the technology industry, such as Facebook, Silver Lake, Vista, General Atlantic, and the most recent, KKR have announced approximate investments of Rs 78,562 crore in Reliance Industries - Jio Platforms.
Reliance Industries on May 22, 2020 said KKR (formerly known as Kohlberg Kravis Roberts & Co. and KKR & Co. L.P.) has planned to invest Rs 11,367 crore for 2.32% stake in Jio Platforms. KKR is an American global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate, credit, and, through its strategic partners, hedge funds.
This deal values Jio Platforms at an equity value of Rs 4.91 lakh crores and an enterprise value of Rs 5.16 lakh crores. This is the private equity firm’s largest investment in Asia and will turn out to be a 2.32% equity stake in Jio Platforms on a fully diluted basis.
Over the duration of May 2020 leading technology investors, such as, Facebook, Silver Lake, Vista, General Atlantic and KKR have stated that they will be investing an aggregate of Rs 78,562 crores into Jio Platforms.
The transactions come on account of Jio’s plans to be net debt-free before March 31, 2021.
Chairman and Managing Director of Reliance Industries, Mukesh Ambani, stated, “I am delighted to welcome KKR, one of the world’s most respected financial investors, as a valued partner in our onward march to growing and transforming the Indian digital ecosystem for the benefit of all Indians. KKR shares our ambitious goal of building a premier Digital Society in India. KKR has a proven track record of being a valuable partner to industry-leading franchises and has been committed to India for many years. We are looking forward to leveraging KKR’s global platform, industry knowledge, and operational expertise to further grow Jio.”
KKR will be using its funds from its Asia private equity and growth technology funds to complete the investment.
The deal is conditioned to regulatory and other customary approvals.
Co-Founder and Co-CEO of KKR, Henry Kravis, stated, “Few companies have the potential to transform a country’s digital ecosystem in the way that Jio Platforms is doing in India, and potentially worldwide. Jio Platforms is a true homegrown next-generation technology leader in India that is unmatched in its ability to deliver technology solutions and services to a country that is experiencing a digital revolution. We are investing behind Jio Platforms’ impressive momentum, world-class innovation, and strong leadership team, and we view this landmark investment as a strong indicator of KKR’s commitment to supporting leading technology companies in India and the Asia Pacific.”
Simpson Thacher & Bartlett LLP and Shardul Amarchand Mangaldas & Co. (SAM) are legal counsel to KKR. Deloitte Touche Tohmatsu India is the financial advisor to KKR.
AZB & Partners and Davis Polk & Wardwell acted as legal counsel and Morgan Stanley as the financial advisor to Reliance Industries.