Mukesh Ambani, chairman and managing director, Reliance Industries, said that Silver Lake's additional investment in Jio Platforms, within a span of five weeks during the Covid-19 pandemic, is a strong endorsement of the intrinsic resilience of the Indian economy.
Earlier in the day, Reliance Industries announced the sale of 1.85 per cent stake in its digital unit to Mubadala for Rs 9,093.60 crore, the sixth deal in as many weeks that will inject a combined Rs 87,655.35 crore in the oil-to-telecom conglomerate to help it pare debt.
The announcement today further shows the appeal of Jio Platforms to foreign investors that are looking for a slice of the world's second-largest internet market.
"I am delighted that Mubadala, one of the most astute and transformational global growth investors has made a decision to partner us in our journey to propel India's digital growth towards becoming a leading DIGITAL NATION in the world".
"I am delighted that Mubadala, one of the most astute and transformational global growth investors, has made a decision to partner us in our journey to propel India's digital growth towards becoming a leading digital nation in the world", said Mukesh Ambani, chairman and managing director, Reliance Industries.
Khaldoon Al Mubarak, managing director and group CEO, Mubadala Investment Company, said, "We are committed to investing in, and actively working with, high growth companies which are pioneering technologies to address critical challenges and unlock new opportunities".
Mubadala said it had agreed to invest $1.2 billion in Reliance Jio Platforms for a 1.85% stake in the firm. Through my longstanding ties with Abu Dhabi, I have personally seen the impact of Mubadala's work in diversifying and globally connecting the UAE's knowledge-based economy. It provides telecom and digital services under brand Jio, and a connectivity platform to more than 38.8 crore subscribers.
Mubadala, which has more than $229 billion in assets, is also an investor in AMD and Alphabet's Waymo, and SoftBank.
The interest in Jio Platforms highlights its potential to become the dominant player in India's digital economy. Its portfolio companies are spread in sectors such as aerospace, agribusiness, ICT, semiconductors, metals and mining, pharmaceutical and medical technology, renewable energy and utilities.
The transaction is subject to regulatory and other customary approvals.