Ambani’s Jio Adds Intel Backing With $253 Million Stake Sale
The investment arm of Intel Corp. agreed to pay Rs 1,895 crore for a 0.39% stake in Jio Platforms.
(Bloomberg) -- The technology venture of billionaire Mukesh Ambani secured 18.95 billion rupees ($253 million) from Intel Capital, adding to a slew of investments since April that have reached more than $15 billion.
The investment arm of computer chip giant Intel Corp. agreed to buy a 0.39% stake in Jio Platforms Ltd., giving the business an equity value of $65 billion, Ambani’s conglomerate Reliance Industries Ltd. said in a statement Friday.
Intel Capital joins global names including Facebook Inc., KKR & Co. and Silver Lake Partners in backing Ambani’s bid to transform Reliance into a digital services giant and reduce its dependence on revenue from oil refining and petrochemicals.
| Buyer | Amount | Stake | Date |
|---|---|---|---|
| $5.7 billion | 9.99% | April 22 | |
| Silver Lake | $1.35 billion | 2.08% | May 4, June 5 |
| Vista | $1.5 billion | 2.32% | May 8 |
| General Atlantic | $873 million | 1.34% | May 17 |
| KKR | $1.5 billion | 2.32% | May 22 |
| Mubadala | $1.2 billion | 1.85% | June 5 |
| Adia | $752 million | 1.16% | June 7 |
| TPG Capital | $600 million | 0.93% | June 13 |
| L Catterton | $252 million | 0.39% | June 13 |
| PIF | $1.5 billion | 2.32% | June 18 |
| Intel | $253 million | 0.39% | July 3 |
“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 reached its goal of reducing net debt to zero earlier than its March 2021 target. 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 and progress in cutting debt have helped Reliance Industries shares double since late March. On Friday, the stock gained as much as 1.9% to a record 1,793 rupees.
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