After Facebook deal, Mukesh Ambani becomes Asia's richest person again
Mumbai/IBNS: Indian businessman Mukesh Ambani pipped China's Jack Ma to once again become Asia's richest person after striking a deal with Mark Zuckerberg's Facebook Inc. a day ago, media reports said.
Ambani's fortune increased by $4.7 billion to $49.2 billion after Reliance Industries' stock surged by 10.30% to Rs 1363.35 on Wednesday.
In what is seen as the largest Foreign Direct Investment (FDI) in the Indian tech sector, social media giant Facebook will buy 9.99 percent stake in Reliance Industries led Jio Platforms.
Reliance Industries Limited, Jio Platforms Limited and Facebook, Inc. on Wednesday announced the signing of binding agreements for an investment of Rs. 43,574 crore by Facebook into Jio Platforms.
This investment by Facebook values Jio Platforms at Rs. 4.62 lakh crore pre-money enterprise value ($65.95 billion, assuming a conversion rate of Rs. 70 to a US Dollar).
Facebook’s investment will translate into a 9.99 percent equity stake in Jio Platforms on a fully diluted basis.
Jio Platforms, a wholly-owned subsidiary of Reliance Industries Limited, is a next-generation technology company building a Digital Society for India by bringing together Jio’s leading digital apps, digital ecosystems and India’s #1 high speed connectivity platform under one umbrella.
Reliance Jio Infocomm Limited, which provides connectivity platform to over 388 million subscribers, will continue to be a wholly-owned subsidiary of Jio Platforms, read a statement issued by Reliance Jio.
This is the largest investment for a minority stake by a technology company anywhere in the world and the largest FDI in the technology sector in India.
Commenting on the partnership with Facebook, Ambani, chairman and managing director, Reliance Industries Ltd, said, "When Reliance launched Jio in 2016, we were driven by the dream of INDIA’S DIGITAL SARVODAYA – India’s Inclusive Digital Rise to improve the quality of life of every single Indian and to propel India as the world’s leading Digital Society.
All of us at Reliance are therefore humbled by the opportunity to welcome Facebook as our long-term partner in continuing to grow and transform the digital ecosystem of India for the benefit of all Indians."
He added, "The synergy between Jio and Facebook will help realise Prime Minister Shri Narendra Modi’s ‘Digital India’ Mission with its two ambitious goals — ‘Ease of Living’ and ‘Ease of Doing Business’ – for every single category of Indian people without exception. In the post-Corona era, I am confident of India’s economic recovery and resurgence in the shortest period of time. The partnership will surely make an important contribution to this transformation.”
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