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US-Based PE Gaint Silver Lake to invest Rs 5,656 crore in Jio Platforms

US-Based Silver Lake: The deal comes days after Facebook said it would spend $5.7 billion to buy a 9.99 per cent stake in Jio Platforms.
PE Gaint Silver Lake Partners, the American private equity giant, has bought one percent of Jio Platforms for $750 million (Rs. 5,655.75 crore) in a deal that values the tech and digital arm of Reliance Industries Ltd (RIL) at $65 billion.

The deal comes less than two weeks after Facebook spent $5.7 billion to buy a 9.99 percent stake in Jio. The Facebook-Jio deal was the social media network’s biggest since its $22 billion buyout of WhatsApp in 2014.

Reliance Industries Ltd said on Monday private equity firm Silver Lake will invest nearly $750 million (Rs. 5,656 crores) in its digital arm, days after securing a $5.7 billion (Rs. 43,574 crores) investment from Facebook, boosting its efforts to cut debt. The deal adds to a flurry of fund-raising activity announced by the oil-to-telecoms conglomerate in recent weeks including a $7 billion (roughly Rs. 53,035 crores) share sale, with plans to eliminate $21.4 billion (roughly Rs. 1.62 crores) of net debt by the end of the year.
Mr. Mukesh Ambani, Chairman and Managing Director, Reliance Industries, said, “I am delighted to welcome Silver Lake as a valued partner in continuing to grow and transform the Indian digital ecosystem for the benefit of all Indians. Silver Lake has an outstanding record of being a valuable partner for leading technology companies globally.. We are excited to leverage insights from their global technology relationships for the Indian Digital Society's transformation.”

Silver Lake is a technology investor with approximately $40 billion in combined assets under management. Some of its major investments include AirBNB, Alibaba, Ant Financial, Alphabet’s Verily and Waymo units, Dell Technologies and Twitter besides other global technology leaders.
“In the wake of severe economic disruptions caused by the Covid-19 pandemic, globally and especially within India, this partnership with one of the most renowned tech investors globally, Silver Lake, has special significance,” Reliance Industries said in a note.
On April 30, Reliance had said, "In addition to the Facebook investment, the Board was informed that RIL has received strong interest from other strategic and financial investors and is in good shape to announce a similar sized investment in the coming months."

As the country goes through a relative time of turmoil because of the Coronavirus, it looks like companies like Reliance Jio are looking to revitalise the economy of India by introducing digitisation across all areas of the country. Reliance has also said that the company has piqued the interest of other financial investors. 

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