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US private equity firm Silver lake buys 1.15% stake in Reliance jio platforms for Rs 5655.75 cr

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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).Silver Lake buys stake in Reliance Jio for Rs 5,655

  • 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.

Key Points:

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:
– 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:
– Mumbai, Maharashtra
Chairman and MD– Mukesh Ambani