Jio-Mubadala deal: Mukesh Ambani lands $ 1.2 billion as his war chests grow

His technology company Jio Platforms announced on Friday that it is receiving approximately 91 billion rupees ($ 1.2 billion) from Mubadala Investment Company in exchange for a 1.85% stake in the business.

That leads to the billionaire’s recent fundraising at 877 billion rupees ($ 11.6 billion) so far, the company’s sixth major investment in less than two months.

“I am delighted that Mubadala, one of the tastiest and most transformative investors for global growth, has decided to partner [with] us on our way to boost India’s digital growth, ”Ambani said on Friday.

Jio is part of Ambani’s broader conglomerate Reliance Industries. It includes Reliance Jio, India’s largest mobile network with more than 388 million subscribers. Jio also has an app ecosystem, offering those millions of mobile users everything from online grocery shopping, digital payments, to video streaming.

Facebook (full board) he started through investments in April when he invested $ 5.7 billion in Jio Platforms for approximately 10% stake. Since then, Jio has secured financing from US A-list investors, including Silver Lake, Vista, General Atlantic and KKR.

Mubadala, meanwhile, has a portfolio worth $ 229 billion and bets on technology, energy, mining, aviation, real estate and healthcare.

“We have seen how Jio has already transformed communication and connectivity in India,” said Khaldoon Al Mubarak, CEO and Director of Mubadale.

Mubadala values ​​investments in the company approximately $ 65 billion, similar to the company’s previous operations, Jio states.
Analysts say Ambani’s ultimate goal is to build the next global technology company, one that will rank side by side with Google (GOOGL). Tencent (TCEHY). Amazon (AMZN) and Alibi (BABA).
The billions raised in the last few weeks will be used to boost that ambition, as well as to pay off the debt with Jio’s parent company’s balloon. The oil and energy industry, which makes up a large part of Reliance’s business, has died poorly coronavirus pandemic, Global oil demand has increased due to a sharp decline in traffic, industrial and commercial activity.

Ambani said at a shareholders ’meeting last year that he wants Reliance Industries to become“ zero net debt ”by the end of March 2021. As of March 2020, Reliance had about $ 44 billion in debt according to its books.

See also  Coronavirus live information: Trump suggests Fauci 'alarmist' Hong Kong helps make masks required indoors | World news

In April, Reliance Industries announced it was ahead of schedule and would reach zero debt target by the end of the year.

Leave a Reply

Your email address will not be published. Required fields are marked *