Thursday, February 2, 2023
HomeEconomyIntel invests Rs 1,895 crore in Ambani's Jio Platforms for 0.39% stake

Intel invests Rs 1,895 crore in Ambani’s Jio Platforms for 0.39% stake

Intel Corp. has agreed to pay approximately Rs. 1,895 crore ($253 million) for a stake in the telecom giant, joining other investors like Facebook Inc., KKR & Co. and Silver Lake Partners.

Text Size:

Mumbai: The investment arm of Intel Corp. agreed to pay approximately Rs. 1,895 crore ($253 million) for a stake in Jio Platforms Ltd., the telecommunications and digital services business of Reliance Industries Ltd., adding to investments in recent months by top Silicon Valley companies and private equity funds.

The deal is for a 0.39% share and gives the business a $65 billion equity value, Reliance said in a statement Friday.

Intel Capital joins global names including Facebook Inc., KKR & Co. and Silver Lake Partners in backing billionaire Mukesh Ambani’s bid to transform Reliance into a digital services giant and reduce its dependence on revenue from oil refining and petrochemicals.

“Through this investment, we are excited to help fuel digital transformation in India, where Intel maintains an important presence,” Wendell Brooks, Intel Capital president, said in the statement.

Morgan Stanley acted as financial adviser to Reliance Industries.

Ambani’s digital unit has sold about 25% in stakes and has said it paid net debt down to zero earlier than the March 2021 target it set last year. Jio is expected to use its roughly 400 million wireless phone subscribers as the cornerstone of an e-commerce and digital services business.

The slew of stake sales have helped Reliance Industries shares double since late March, and the stock traded at a record high on Friday. – Bloomberg


Also read: Mumbai’s Reliance Jio Convention Centre to be converted into corona care centre


 

Subscribe to our channels on YouTube & Telegram

Support Our Journalism

India needs fair, non-hyphenated and questioning journalism, packed with on-ground reporting. ThePrint – with exceptional reporters, columnists and editors – is doing just that.

Sustaining this needs support from wonderful readers like you.

Whether you live in India or overseas, you can take a paid subscription by clicking here.

Support Our Journalism

Most Popular