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Reliance Jio and Silver Lake Deal: key points in details

In less than two weeks after Facebook announced buying a 10% stake in Reliance Jio. American private equity time Silver Lake partners have bought a 1% stake of Jio platforms.

Silver Lake Partners have part of 1.155 stakes of Jio platforms for 5,655 crore rupees or 750 million dollars. In a deal that really values the digital unit of Reliance Industries at 5.15 lakh crore rupees in rupee terms. Now, this is a 12.5% premium to the value indicated by Facebook which had bought a 9.99% stake of the digital unit of RIL which valued Jio at 4.62 lakh crore rupees.

That is the primary sizable funding by Silver Lake in India. Silver Lake Partners is the global largest technology investor. Silver Lake has a monitor record of investing in among the largest and most successful tech firms worldwide such as Twitter, Alibaba, Financials Alphabets, Dell and Airbnb, and also verily among many others.

Effectively, the deal will assist scale back our Isles debt burden which has really bulged because of the breakneck growth of Jio and likewise different businesses. Now Mukesh Ambani who’s the chairman and MD of Reliance Industries has said that Silver Lake is one of the most respected voices in technology and also finance. They’re moreover excited to leverage insights from their world tech relationships for the Indian digital society’s transformation.

Egon Durban, whose Silver Lake Co-CEO and also managing partner has also said in a statement that Jio platforms have brought extraordinary engineering capabilities to bear on bringing the power of low-cost digital services providers to a mass consumer base and also a small enterprise population. The market potential that they are addressing is also enormous fields Silver Lake

Jio platforms believe this partnership has a special significance and that comprehensive digitization will be a vital component of the revitalization of the Indian economy.

The deal rating agency fitch has said that the deal with Facebook and also with Silver Lake will help strengthen our Isles balance sheet. Which has also said that it expects RIL to make further investments in consumer technology following the deal with Silver Lake Partners.

Financial services firm Edelweiss has said that bringing in a strategic partner in a difficult time like this is quite encouraging, on the other hand, SBI cap has said that getting a premium on the deal just a week’s time before the rights issue is called so quite positive for the company Reliance Industries and will also bode well for its shareholders in the times to come.

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