India's Reliance says General Atlantic to invest $870mln in digital unit

Equity firm General Atlantic will buy 1.34% of its digital unit

  
A bird flies past a Reliance Industries logo installed on its mart in Ahmedabad, India January 16, 2017. Image used for illustrative purpose.

A bird flies past a Reliance Industries logo installed on its mart in Ahmedabad, India January 16, 2017. Image used for illustrative purpose.

REUTERS/Amit Dave

NEW DELHI- Indian conglomerate Reliance Industries said on Sunday U.S. fund General Atlantic will buy 1.34% of its Jio Platforms digital unit for 65.98 billion rupees ($870 million).

With this investment, Jio Platforms, which includes telecoms business Jio Infocomm, has raised almost 672 billion rupees from investors including Facebook Inc, Silver Lake and Vista Equity Partners in less than four weeks. 

The investment values Jio Platforms at an equity value of 4.91 trillion rupees and an enterprise value of 5.16 trillion rupees, Reliance said in a statement.

Reliance, controlled by tycoon billionaire Mukesh Ambani, forged a $5.7 billion deal with Facebook for a 9.99% stake in Jio Platforms on April 22 and secured a $750 million investment from private equity firm Silver Lake.

The deals, along with Reliance's plan to sell $7 billion in new shares, will help the Mumbai-based oil-to-telecoms giant meet its target of eliminating $21.4 billion of net debt by the end of the year.

General Atlantic invests in sectors such as technology, financial services and healthcare, including stakes in Airbnb, Alibaba BABA.N , ByteDance and Facebook.

($1 = 75.8170 Indian rupees)

(Reporting by Sankalp Phartiyal; additional reporting by Abhirup Roy; editing by Emelia Sithole-Matarise and Jason Neely) ((sankalp.phartiyal@thomsonreuters.com; +91-11-49548064;))

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