Saudi Arabia’s wealth fund Public Investment Fund (PIF) is close to picking up a 2.33 per cent stake in Mukesh Ambani led Jio Platforms for about $1.5 billion, Gulf News reported on Monday citing an unnamed source.
The contours of the deal with Saudi Arabia’s PIF were finalised during Ramadan. With PIF coming on board, Jio Platforms may end up diluting 25 per cent of its equity, the report said. Any new investors coming on board in future will have to be strategic investors, it added.
Jio Platforms is a wholly-owned unit of Reliance Industries Limited (RIL) and owns the group’s digital businesses including Jio, Jio Pay and Jio Mart. Reliance has so far sold over 22 per cent of Jio Platforms to different investors including Facebook Inc, global investment firm TPG, private equity firm L Catterton and Silver Lake, securing $13.72 billion in the past eight weeks.
The last deal, which was announced on Saturday, saw TPG buying a 0.93 per cent stake in Jio for $598 million, while private equity firm L Catterton picked up a 0.39% stake for $249 million. Separately, Abu Dhabi’s Mubadala and ADIA have picked up significant stakes amounting to $1.2 billion and $750 million, respectively in the company.
In April, social media giant Facebook Inc announced an investment of $5.7 billion in Jio Platforms. The investment made Facebook the largest minority shareholder in the Indian company.
Reliance Jio, the fast-growing telecom carrier controlled by billionaire Mukesh Ambani, began operations in late 2016. Reliance is also considering an overseas listing of Jio Platform, reported Mint in May.