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RIL in talks with Middle East wealth firms; looks for more investment

RIL in talks with Middle East wealth firms; looks for more investment
RIL in talks with Middle East wealth firms; looks for more investment
  • Reliance Jio is in talks with several sovereign wealth funds from the Middle East region in Abu Dhabi and Saudi Arabia.
  • Any new investment to be made into the company would be an addition to the USD 10 billion investment already made earlier.

According to various sources, the telecom giant Jio is in talks several sovereign wealth firms in the Middle East looking to invest in the digital arm of Reliance Industries adding to the recent big names that have already contributed USD 10 billion towards the platform. 

Reliable sources have revealed that a deal of around USD 1 billion is thought to have been struck between Abu Dhabi based Mubadala Investments and Jio Platforms Ltd. with an announcement expected to come soon this week. The CEO of Reliance, Mukesh Ambani is also said to be in the midst of discussions for a deal with other investors namely the Investment Authority of Abu Dhabi, and Saudi Arabia’s Public Investment Fund.

Preparations to add to the USD 10 billion are being made by Jio Platforms as the company continues to look for overseas investors. Jio Platforms in recent times has already received backing from high profile investors like Facebook Inc. and KKR that are all looking to take a slice from India’s massive consumer market.

The platform has proven to be an exciting prospect for foreign investors because of versatility in technology and presence in payments, retail, and education. Other investors like Silver Lake, General Atlantic, and Vista Equity partners have also committed financial resources to the company.

With the new investments being made by equity firms and technology giants, Reliance Industries is looking to slash its debts as promised by Mukesh Ambani last year. The outside investments made will help set Jio’s valuation, which until now was entirely owned by the billionaire’s conglomerate.

As per sources, there is nothing concrete as to whether these deals will be completed. There is also a possibility of the deals being delayed or even falling apart. Representatives from Abu Dhabi Investments, Saudi Arabia’s PIF, and Reliance Industries have declined to comment on this matter. 

Source Credits: https://economictimes.indiatimes.com/tech/internet/mukesh-ambani-nears-deal-with-top-mideast-sovereign-funds-for-jio/articleshow/76167670.cms