The companies said in a joint statement on Sunday that Qualcomm Ventures, the investment arm of Qualcomm Incorporated, will invest Rs.730 crore in Jio platforms to acquire a 0.15% stake.
This is the 12th investor to pick up a stake in Reliance Industries Ltd’ (RIL) telecom and digital business in less than two months. The acquisition of Qualcomm Ventures' stake will bring total investments in Jio Platforms to Rs 1,18,318.45 crore for a combined 25.24 % holding.
Reliance said in the joint statement that the investment, which is subject to regulatory and other approvals, ties the value of Jio Platforms' equity to Rs 4.91 lakh crore and enterprise value at Rs 5.16 lakh crore.
Jio Platforms houses RIL Telecom's business to Reliance Jio Infocomm, the largest in the country with nearly 400 million subscribers, along with other digital properties and investments.
"Qualcomm has been a valued partner for several years and we have a shared vision to connect everything by building a strong and secure wireless and digital network and expanding the benefits of digital communication for everyone in India," said Mukesh Ambani. , President, and CEO for Reliance Industries. "As a global leader in wireless technologies, Qualcomm offers deep technical insights and insights that help us deliver our vision for 5G and India's digital transformation for both individuals and organizations." He added.
Qualcomm's investments come at a time when RIL is pivoting itself as a consumer technology company, far from being an energy conglomerate. RIL's Jio is also betting on 5G for propelling the next set of services.
In fact, RIL emphasized that Reliance Jio is a technology company rather than just a telecom firm, and emphasized the fact that the 11 investors who have taken a stake are primarily focused on the global technology space.
"With our shared goal of expanding the benefits of digital connectivity for everyone and everything, we look forward to Jio offering a new set of services and experiences to Indian consumers," said Steve Mollenkopf, CEO of Qualcomm Incorporated.
Before Qualcomm, Intel Capital, the social media company Facebook, the two largest sovereign investment arms in Abu Dhabi: Abu Dhabi Investment Authority and Mubadala, private equity firms Silver Lake (which invested in two tranches), Vista Equity Partners, General Atlantic, KKR, TPG and L Catterton and Saudi Arabia’s Public Investment Fund (PIF), have invested in Jio Platforms.
Among the above investments, Jio Platforms received full approval to sell its stake to L Catterton, Public Investment Firm (PIF), Silver Lake, and General Atlantic Singapore, and received a total of Rs 30,062.43 crore against a 6.13,% stake.
On July 9, Jio Platforms received the amount of Facebook's investment for Rs 43,574 crore against a 9.99% stake, the highest proportion of investments. The CCI approved Facebook’s purchase of the deal, culminating in a deal that has perhaps seen the largest foreign direct investment in the technology landscape in India.
RIL recently said the funds raised from the sale of stakes in Jio Platforms, along with a Rs 53,124-crore rights issue, have made the net debt-free before the deadline set in March 2021.
Morgan Stanley acted as financial advisor to Reliance Industries, AZB & Partners, and Davis Polk & Wardwell as legal counsels. Trilegal worked as a legal counsel for Qualcomm Ventures.
Source: Economics Times
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