Facebook Inc. will complete its acquisition of a 9.9% stake in Jio Platforms via a new entity Jaadhu Holdings LLC, according to regulatory documents.
In April, the Mark Zuckerberg-controlled firm said it will invest $ 5.7 billion, or Rs 43,574 crore, in the digital and telecom assets controlled by Mukesh Ambani, as the US-based social networking giant plans to expand its presence in its largest global market.
Following this deal, high-profile private equity investors, from KKR & Co. to General Atlantic picked up the stake in Jio Platforms, pegging the company's valuation at $ 10 billion ahead of a potential overseas listing.
On Tuesday, Bloomberg reported that Jio PLatforms is nearing a deal with top middle-eastern sovereign funds. Reliance Industries Ltd. aims to be debt-free by the end of 2020-21.
According to a submission made to the Competition Commission of India, Jaadhu Holdings LLC an indirect,wholly-owned subsidiary of Facebook Inc. “Jaadhu is a newly incorporated company in March 2020 under the laws of the state of Delaware, US... Jaadhu does not participate in any business in India or anywhere in the world,” it said.
It added that the notification form is presented in relation to the proposed acquisition by Jaadhu Holdings of a minority, non-controlling interest of approximately 9.99% of the fully diluted capital in Jio platforms.
Meanwhile, Jio Platforms, WhatsApp Inc., and Reliance Retail Ltd. Entering into a separate commercial arrangement.
Reliance Retail’s JioMart, a new commercial marketplace connecting customers with Kirana stores and other small and microlocal Indian businesses, plans to integrate certain WhatsApp services with JioMart.
The submission noted that the proposed transaction does not change the competitive landscape in any potential market and that Facebook and Jio Platforms will continue to operate independently. "The proposed transaction and proposed commercial agreement are pro-competitive and beneficial to consumers, Kirana stores, and other local small and micro companies in India and takes forward the vision of digital India.”
Source: Bloomberg, Business Standard
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