On May 04, 2020, US(United States) private equity company Silver Lake partners has bought a 1.15% stake in Jio Platforms Limited, a wholly-owned subsidiary of Reliance Industries Limited (RIL) for Rs 5,655.75 crore ($750 million).
- It is to be noted that the deal came a days after Facebook bought a 9.99 % stake in Reliance Jio for Rs 43,574 crore ($ 5.7 billion). During the lockdown, it was seen as the biggest deal in the whole world.
i.With this investment, the equity value of Jio platform is Rs 4.90 lakh crore and the enterprise value is 5.15 lakh crore & also represents a 12.50% premium to the equity valuation of investments made by Facebook. This deal of Silver Lake is at a higher valuation than the Facebook deal.
ii.In view of the severe economic crisis caused by the coronavirus (COVID-19) pandemic, this deal from Silver Lake globally and especially within India will be an important component of the revival of the Indian economy.
About Silver Lake partners:
Headquarters– California, United States
Co-CEO and Managing Partner– Egon Durban
Its combined AUM (Assets Under Management) is worth $ 43 billion &has made over 100 investments and has executives in Silicon Valley, New York, Hong Kong and London.
About Reliance Industries Ltd:
Headquarters– Mumbai, Maharashtra
Chairman and MD– Mukesh Ambani