Electronic chip maker Intel’s investment arm, Intel Capital, will buy 0.39 percent stake in billionaire Mukesh Ambani’s digital unit, Jio Platforms, for ₹1,894.50 crores, the company said on Friday. The transaction is subject to regulatory and other customary approvals
Intel Capital is the 12th company to join the list of marquee firms who have recently invested in Jio Platforms, taking the total investment amount to ₹1,17,588.45 crore. Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partne₹and Davis Polk & Wardwell acted as legal counsels.
“Intel Capital will invest ₹1,894.50 crore in Jio Platforms at an equity value of ₹4.91 lakh crore and an enterprise value of ₹5.16 lakh crore. Intel Capital’s investment will translate into a 0.39 percent equity stake in Jio Platforms on a fully diluted basis,” Reliance Industries and Jio Platforms said in a joint statement.
Jio Platforms, a wholly-owned subsidiary of Reliance Industries, also runs the Reliance Jio telecom business. Jio leads the India market with over 38.8 crore subscribers.
“Intel Capital has an outstanding record of being a valuable partner for leading technology companies globally. We are therefore excited to work together with Intel to advance India’s capabilities in cutting-edge technologies that will empower all secto₹of our economy and improve the quality of life of 1.3 billion Indians,” Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said
Wendell Brooks, Intel Capital President, said that Jio Platforms’ focus on applying its impressive engineering capabilities to bring the power of low-cost digital services to India aligns with Intel’s purpose of delivering breakthrough technology that enriches lives.
“We believe digital access and data can transform business and society for the better. Through this investment, we are excited to help fuel digital transformation in India, where Intel maintains an important presence,” Brooks said.
Intel Capital is the investment arm of Intel Corporation, a leader in the semiconductor industry, which invests globally in innovative companies with a focus on disruptive technology areas like cloud computing, artificial intelligence, and 5G – opportunities where Jio is also innovating and investing for growth.
Prior to this, Jio Platforms raised money from 10 global entities for a 24.70% stake for ₹1.16 lakh crore. These investments, along with ₹53,124 crores from a rights issue, have made RIL debt-free.
The other investo₹include Facebook, Abu Dhabi’s two largest sovereign investment arms, Abu Dhabi Investment Authority and Mubadala, along with private equity firms Silver Lake, Vista Equity Partners, General Atlantic, KKR, TPG, L Catterton and Saudi Arabia’s Public Investment Fund (PIF).