A wholly-owned subsidiary of the Abu Dhabi Investment Authority (‘ADIA’) has reached an agreement to acquire a 1.16% stake in leading Indian digital services company, Jio Platforms for approximately $750 million. The transaction is subject to customary regulatory approvals. Jio Platforms, a wholly-owned subsidiary of Reliance Industries, is a next-generation technology platform focused on providing high quality and affordable digital services across India, with more than 388 million subscribers.
It may be recalled that recently Mubadala has also announced plans to invest $1.2 billion to acquire 1.85 percent equity stake in Jio.
The acquisition is the latest principal investment by ADIA’s Private Equities Department (PED), across its target sectors of financial services, healthcare, industrials, technology, and consumer products. As a long-term investor in India, ADIA holds directly or through its subsidiaries investments in numerous asset classes including equities, fixed income, real estate and private equity, among others. It has increased activity in India over recent years, encouraged by the country’s strong and ongoing economic growth and steadily maturing regulatory and legal systems.
Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department at ADIA, said: “Jio Platforms is at the forefront of India’s digital revolution, poised to benefit from major socio-economic developments and the transformative effects of technology on the way people live and work. The rapid growth of the business, which has established itself as a market leader in just four years, has been built on a strong track record of strategic execution. Our investment in Jio is a further demonstration of ADIA’s ability to draw on deep regional and sector expertise to invest globally in market leading companies and alongside proven partners.”
Mukesh Ambani, Chairman and Managing Director, Reliance Industries Ltd, said: “I am delighted that ADIA, with its track record of more than four decades of successful long term value investing Classification: Public across the world, is partnering with Jio Platforms in its mission to take India to digital leadership and generate inclusive growth opportunities. This investment is a strong endorsement of our strategy and India’s potential.”
