Middle East sovereign wealth funds in talks to buy stakes in Reliance Retail: Report

Mumbai: Middle East sovereign wealth funds, including the Abu Dhabi Investment Authority (Adia) and Saudi Arabia’s Public Investment Fund (PIF), are in talks to buy stakes in Mukesh Ambani-led Reliance Industries’ arm Reliance Retail, Financial Times reported on Wednesday.

Adia is in discussions about an investment of $750 million at a valuation of roughly $57 billion, according to people familiar with the matter, while the PIF could funnel as much as $1.5 billion into the entity controlled by Ambani’s oil-to-telecom conglomerate Reliance Industries, the report said, adding that Mubadala may also take a stake.

Adia, Mubadala and PIF declined to comment to FT, while Reliance did not immediately respond to a request for comment, the report said.

Earlier in the day, the US private equity firm Silver Lake said it will invest Rs 7,500 crore in Reliance Retail for around 1.75 per cent stake in the company.

This marks the second billion dollar investment by Silver Lake in a Reliance Industries subsidiary after the $1.35 billion investment in Jio Platforms announced earlier this year.

KKR & Co. is in advanced talks to invest at least $1 billion in Reliance Retail, Bloomberg reported citing sources.

The Silver Lake-Reliance Retail deal came in weeks after Ambani’s back-to-back Jio deals that had taken the market by surprise. Jio Platforms raised a combined Rs 1,52,056 crore by selling over 33 per cent stake, from tech majors such as Facebook and Google, apart from other marquee investors.

On August 31, RIL said its unit Reliance Retail Ventures (RRVL) was acquiring the retail and wholesale business and the logistics and warehousing business from the Kishore Biyani-promoted Future Group as going concerns on a slump sale basis for a lump sum total consideration of Rs 24,713 crore.

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