Saudi’s Public Investment Fund buys 2.32% stake in Jio Platforms for Rs 11,367 crore

Agencies
June 18, 2020

New Delhi, Jun 18: Reliance Industries Ltd on Thursday said it has sold a 2.32 per cent stake in its digital unit to Saudi Arabia's Public Investment Fund (PIF) for Rs 11,367 crore, taking the cumulative fund raising to about Rs 1.16 lakh crore in two months.

Starting with Facebook Inc on April 22, Reliance has sold almost 25 per cent of equity in Jio Platforms - the maximum reports suggest the company intends to dilute to financial investors.

The investment by Saudi sovereign wealth fund is "at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore", the company said in a statement.

With this investment, Jio Platforms has raised Rs 115,693.95 crore from some of the leading global investment powerhouses at a time when the world is deeply impacted by the coronavirus pandemic, resulting in a recession kind of environment for the global economy.

"With the addition of PIF's investment, Jio Platforms has established partnerships with a marquee set of global financial investors, who will contribute to establishing the Digital Society vision for India," the statement said.

Jio Platforms houses India's biggest telecom firm by subscribers, Reliance Jio. With more than 388 million users, Jio has forced out several rivals and driven consolidation in the sector since entering the market in 2016 with free voice services and cut-price data.

Over the past two months, billionaire Mukesh Ambani's oil-to-telecom conglomerate has announced the sale of about $14 billion of assets, completed a Rs 53,124 crore rights issue and slowed the run rate of new investment by a quarter.

These will help Reliance meet its target of paying off Rs 1.61 lakh crore of net debt by the end of the year.
This is PIF's largest investment into the Indian economy to date.

Ambani, chairman and managing director of Reliance Industries, said, "We at Reliance have enjoyed a long and fruitful relationship with the Kingdom of Saudi Arabia for many decades. From oil economy, this relationship is now moving to strengthen India's New oil (data-driven) economy, as is evident from PIF's investment into Jio Platforms."

Yasir Al-Rumayyan, governor of PIF, commented: "We are delighted to be investing in an innovative business which is at the forefront of the transformation of the technology sector in India. We believe that the potential of the Indian digital economy is very exciting and that Jio Platforms provides us with an excellent opportunity to gain access to that growth."

"This investment will also enable us to generate significant long-term commercial returns for the benefit of Saudi Arabia's economy and our country's citizens, in line with our mandate to safeguard and grow the national wealth of the Kingdom," he said.

The transaction is subject to Indian regulatory and other customary approvals.

Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners and Davis Polk & Wardwell acted as legal counsels.

Prior to this deal, Reliance had sold 22.38 per cent of Jio Platforms to investors including Facebook Inc, securing Rs 104,326.95 crore in eight weeks.

Facebook kicked off the party, investing Rs 43,573.62 crore for a 9.99 per cent stake on April 22. This was closely followed by a further Rs 60,753.33 crore in investment.

Silver Lake - the world's largest tech investor - bought a 1.15 per cent stake in Jio Platforms for Rs 5,665.75 crore on May 4. It invested another Rs 4,546.80 crore for additional 0.93 per cent stake on June 5, taking its total holding to 2.08 per cent
Private equity KKR and Vista Equity Partners have taken 2.32 per cent stake each for Rs 11,367 crore apiece. KKR invested in Jio Platforms on May 22 while Vista invested on May 8.

Abu Dhabi sovereign wealth fund Mubadala Investment Co picked up 1.85 per cent in Jio Platforms for Rs 9,093.60 crore on June 5. Abu Dhabi Investment Authority on June 7 invested Rs 5,683.50 crore for a 1.16 per cent stake in Jio Platforms.

On May 17, global equity firm General Atlantic picked up 1.34 per cent stake in Jio Platforms for Rs 6,598.38 crore.

Global investment firm TPG on June 13 picked up 0.93 per cent for Rs 4,546.80 crore while L Catterton bought 0.39 per cent for Rs 1,894.50 crore.

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News Network
November 30,2020

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New Delhi, Nov 30: The ongoing protests by thousands of farmers against the Centre's new farm laws entered the fifth day on Monday, with the protestors threatening to block all five entry points to the national capital.

Rejecting the Centre's offer to hold talks once they move to the Burari ground, the farmers said they will not accept any conditional dialogue and have called a meeting to discuss their next course of action later in the day.

Farmers, who had reached Nirankarai Samagam Ground in Burari on Saturday, continued their protest there.

Traffic continued to be disrupted in the city due to the protests.

Taking to Twitter, the Delhi Traffic Police on Monday alerted commuters to take an alternate route since Singhu and Tikri borders continued to remain closed.

"Singhu Border is still closed from both sides. Please take alternate route.Traffic has been diverted from Mukarba Chowk & GTK road.Traffic is very very heavy. Please avoid outer ring road from signature bridge to Rohini & vice versa, GTK road, NH 44 & Singhu borders," it tweeted.

In another tweet, it said, "Tikri border is closed for any Traffic Movement. Available Open Borders to Haryana are following Borders Jharoda, Dhansa, Daurala Jhatikera, Badusari, Kapashera, Rajokri NH 8,Bijwasan/Bajghera, Palam Vihar and Dundahera borders."

Union Home Minister Amit Shah had appealed to the farmers to shift to the Burari ground and had said the Centre was ready to hold discussions with them as soon as they move to the designated place.

A meeting of over 30 farmer groups was held to discuss Shah’s offer for talks before the scheduled date of December 3 once they move to Burari in the city, but the thousands of protesters had refused to budge and spent another night in the cold at the Singhu and Tikri border points.

Their representatives had said that Shah’s condition that they shift the protest is not acceptable and claimed Burari ground is an "open jail".

Union Home Secretary Ajay Kumar Bhalla in a letter to 32 farmers organisations sent on Saturday cited the cold conditions and the Covid-19 outbreak and said the farmers should move to the Burari ground where adequate facilities have been made for them.

"As soon as you shift to the ground at Burari, the very next day a high-level committee of union ministers will hold talks at Vigyan Bhavan with the representatives of all farmers unions, with whom dialogue had taken place earlier,” he had said in the letter.

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News Network
November 29,2020

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About 1,000 protesters gathered outside Israeli Prime Minister Benjamin Netanyahu’s official residence in Jerusalem on Saturday night, pressing ahead with their months-long campaign demanding his resignation.

A mix of grassroots groups have held the weekly protests, saying Netanyahu should step down while he is on trial for corruption and because of his handling of the coronavirus in Israel. After two lockdowns this year, the nation’s economy is struggling, and hundreds of thousands of Israelis remain out of work. Many protesters are Israelis who have lost their jobs.

After six months of demonstrations and with wintry weather setting in, the protest crowds have started to shrink. But participants remained vocal and animated Saturday. Nearly all wore masks, though not everyone observed social distancing.

Many held Israeli and pink flags, one of the symbols of the protest movement. Others hoisted model submarines, a reference to a scandal over an Israeli purchase of German submarines in which several Netanyahu associates have been implicated. Netanyahu has not been named as a suspect in that case, though his rival, Defense Minister Benny Gantz, ordered an investigation into the affair this week.

Smaller protests also took place at junctions and overpasses across Israel, and at Netanyahu’s private home in the upscale coastal town of Caesaria.

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News Network
December 2,2020

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Mangaluru, Dec 2: Fisheries minister Kota Shrinivas Poojari today announced Rs 6 lakh ex-gratia for the families of the each fishermen that lost their lives in deep sea fishing boat tragedy off Ullal coast yesterday.

The bodies of four of the six fishermen who went missing after their boat capsized in deep were retrieved after a prolonged rescue-cum-search operation.

"A compensation of Rs 6 lakh each has been released to the families of fishermen who died in the boat tragedy that occurred in deep sea as per the direction of chief minister B S Yediyurappa. I console the families of the deceased and also assure that I will try to get more compensation for them," Mr Poojari, who is also Dakshina Kannada district in-charge minister, tweeted.

Speaking to media persons during his visit to the mortuary of Wenlock hospital, where the bodies of the fishermen were kept, Mr Poojari said: “A probe is underway to find out the cause for the boat tragedy. Search operation is on to trace the two more missing fishermen. As the bodies are entangled inside the fishing net, the process is getting delayed."

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