Facebook pays $5.8b subscription amount to Jio Platforms

The Facebook logo is displayed and lit on a wall. Photo: Alex Haney/Unsplash

Facebook Inc-owned Jaadhu Holdings LLC has paid the subscription amount of 43,574 crore to Reliance Industries Ltd’s (RIL) digital services subsidiary Jio Platforms Ltd to acquire 9.99% stake in the latter, RIL said in a statement on Tuesday.

“Jio Platforms has allotted equity shares to Jaadhu Holdings following which Jaadhu Holdings holds 9.99% of the fully diluted equity share capital of Jio Platforms,” Reliance Industries said in its stock exchange filing.

Facebook was the first deal announced by Jio Platforms on 22 April, after which 11 more foreign investors evinced interest. The deal was approved by the Competition Commission of India (CCI) on 24 June.

Intel Capital, the investment arm of US-based semiconductor giant, last week, had become the eleventh foreign investor in the RIL subsidiary, by investing an amount of 1,894.50 crore.

With the Intel deal, the Ambani firm has so far raised 1.17 trillion from 11 investors in 12 deals in less than 11 weeks. They now own 25.09% stake in the company. Silver Lake Partners, one of the 11 investors, had invested in two tranches.

Other investors in Jio Platforms include TPG, KKR, L Catterton, General Atlantic, Vista Equity Partners, two sovereign wealth funds from Abhu Dhabi — Abu Dhabi Investment Authority and Mubadala – and one from Saudi Arabia – Public Investment Fund.

Reliance Jio Infocomm Ltd, which provides connectivity platform to over 388 million subscribers, will continue to be a wholly-owned subsidiary of Jio Platforms.

The stake sales were part of RIL’s plan to become debt-free by March, a target India’s largest company on 19 June said it had already achieved, even before the Intel deal. However, analysts have pointed out that the net-debt free target has not been achieved as funds from these deals are yet to flow in.

According to a 21 June Mint report, analysts at CLSA, Bernstein, Kotak Institutional Equities, Goldman Sachs and Nomura pegged the company’s net liabilities at between 2.4 trillion and 2.6 trillion in FY20.

This article was first published on livemint.com.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.