Jio-Mubadala transaction: Mukesh Ambani's warfare capabilities continue to increase, earning $1.2 billion

Jio-Mubadala transaction: Mukesh Ambani’s warfare capabilities continue to increase, earning $1.2 billion

His technology company, Jio Platforms, announced on Friday that it will receive approximately Rs 91 crore ($1.2 billion) in compensation from Mubadala Investment Company in exchange for a 1.85% stake in the company.

So far, this has brought the billionaire’s recent fundraising to a total of 87,700 crore ($11.6 billion), marking the company’s sixth major investment in less than two months.

“I am pleased that Mubadala is one of the most sensitive and transformative growth investors in the world and has decided to [with] We are advancing on the road of promoting digital development in India. “

Jio is part of Ambani’s large conglomerate Reliance Industries. It includes Reliance Jio, India’s largest mobile network, with more than 388 million users. Jio also has an application ecosystem that provides millions of mobile users with everything from online grocery shopping, digital payment to video streaming.

Facebook (FB) Started an investment frenzy In April The company invested US$5.7 billion in Jio Platforms and obtained approximately 10% of the shares. Since then, Jio has received funding from a group of leading US investors such as Silver Lake, Vista, General Atlantic and KKR.

At the same time, Mubadala has a portfolio of US$229 billion, betting on technology, energy, mining, aerospace, real estate and healthcare.

Khaldoon Al Mubarak, managing director and chief executive officer of Mubadala, said in a statement: “We have seen how Jio has changed India’s communications and connectivity.”

Mubadala’s investment valued the company at approximately $65 billionAccording to Jio, it is similar to the company’s previous transaction.
Analysts say Ambani’s ultimate goal is to build the next global technology company, which will work with Google (Gao Ge), Tencent (TCEHY), Amazon (Amazon) with Alibaba (Baba).
The billions of dollars raised in the past few weeks will be used to drive this ambition and repay Jio’s parent company’s growing debt. The oil and energy industry is an important part of Reliance’s business, but due to Coronavirus pandemic. Due to the sharp decline in transportation, industrial and commercial activities, global oil demand has fallen sharply.

Ambani said at last year’s shareholders meeting that he hopes Reliance Industries to become a “zero net debt company” by March 2021. As of March 2020, Reliance’s debt was approximately $44 billion.

In April, Reliance Industries stated that it completed its plan ahead of schedule and will achieve its zero debt target by the end of this year.

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