Mubadala Investment Company Buys Jio Stake Worth Rs. 9,093.60 Crore

As expected, Reliance Jio has found a sixth investor on Friday. The operator has announced that the Abu Dhabi-based sovereign investor will invest Rs. 9,093.60 crore in its platform. The Mubadala Investment Company is buying 1. 85 percent stake in India's largest telecom player platform.

After this investment, the Jio platform has so far raised Rs. 87, 655.35 crore from six companies, such as Facebook, Silver Lake, General Atlantic, Vista Equity Partner, KKR, and Mubadala. The company has raised this much amount only in six weeks.

"The Abu Dhabi-based sovereign investor will invest Rs. 9,093.60 crore in Jio Platforms at an equity value of Rs. 4.91 lakh crore and an enterprise value of Rs. 5.16 lakh crore. Mubadala's investment will translate into a 1.85 percent equity stake in Jio Platforms on a fully diluted basis," Reliance Jio said while announcing the deal.

But, the proposed transaction needs to go through approvals. For the unaware, Reliance Jio is a subsidiary of Reliance Industries. The company is currently providing its services to more than 388 million customers in India. Besides, Jio has become a favourite platform for all global companies as they are investing and buying a stake.

"We are committed to investing in, and actively working with, high growth companies which are pioneering technologies to address critical challenges and unlock new opportunities," Khaldoon Al Mubarak, Managing Director and Group CEO, Mubadala Investment Company.

Facebook Forms New Company To Acquire Stake In Jio Platforms

Meanwhile, the social media giant Facebook has formed a new entity to buy 9.99 a stake in Jio platforms. In addition, both companies have submitted their application in the Competition Commission Of India (CCI) for approval. Facebook has formed a firm called Jaadhu Holdings to buy the stake.

"Jaadhu is an indirect wholly-owned subsidiary of Facebook. Jaadhu is a newly incorporated company formed in March 2020... As on the date of the Notification Form, Jaadhu is not engaged in any business in India or anywhere in the world," the application said. Apart from that, both companies have assured CCI that they will work separately, and it will not affect the whole landscape.