Reliance Jio-Silver Lake Rs 5,656 cr deal: Investment values Jio Platforms at enterprise value of Rs 5.15 lakh cr; other key highlights

Silver Lake - one of the world’s largest tech investors - on Monday agreed to invest Rs 5,655.75 crore to buy a 1.15 percent stake in billionaire Mukesh Ambani’s digital unit that houses India’s youngest but biggest telecom firm. “Silver Lake will invest Rs 5,655.75 crore into Jio Platforms,” Reliance said in a statement. “This investment values Jio Platforms at an equity value of Rs 4.90 lakh crore and an enterprise value of Rs 5.15 lakh crore and represents a 12.5 per cent premium to the equity valuation of the Facebook investment announced on 22 April, 2020.” [caption id=“attachment_7580831” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] Here are the key highlights of the deal: This investment values Jio Platforms at an equity value of Rs 4.90 lakh crore and an enterprise value of Rs 5.15 lakh crore. Click here to follow LIVE news and updates on stock markets Silver Lake investment in Jio Platforms represents a 12.5 percent premium to the equity valuation of the Facebook investment announced on 22 April, 2020. Facebook had bought a 9.99 per cent stake in Jio Platforms for $5.7 billion (Rs 43,574 cr) at an enterprise value of Rs 4.62 lakh crore. Silver Lake is the global leader in large-scale technology investing and its investments have included Airbnb, Alibaba, Ant Financial, Alphabet’’s Verily and Waymo units, Dell Technologies, Twitter and numerous other global technology leaders The deal comes less than two weeks after Facebook spent $5.7 billion to buy a 9.99 percent stake in Jio. Strategic and financial investors are to form 20 percent of Jio Platform, half of which was picked by Facebook. Silver Lake is one of the investors and more such strategic and financial investments are likely to be made going ahead Reliance Jio Infocomm Ltd, which provides connectivity platform to over 388 million subscribers, will continue to be a wholly-owned subsidiary of Jio Platforms. Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners and Davis Polk & Wardwell acted as legal counsels. Commenting on the transaction with Silver Lake, Mukesh Ambani, Chairman and Managing Director, Reliance Industries Ltd, said, “I am delighted to welcome Silver Lake as a valued partner in continuing to grow and transform the Indian digital ecosystem for the benefit of all Indians. Commenting on the investment, Egon Durban, Silver Lake Co-CEO and Managing Partner, said, “Jio Platforms is one of the world’’s most remarkable companies, led by an incredibly strong and entrepreneurial management team who are driving and actualizing a courageous vision. (Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd which publishes Firstpost)