Ambani’s Jio adds Intel to backers with $253 million stake sale

The investment arm of Intel Corp. agreed to pay 18.95 billion rupees ($253 million) for a stake in Jio Platforms Ltd., the telecommunications and digital services business of Reliance Industries Ltd., adding to investments in recent months by top Silicon Valley companies and private equity funds.

The deal is for a 0.39% share and gives the business a $65 billion equity value, Reliance said in a statement Friday.

Intel Capital joins global names including Facebook Inc., KKR & Co. and Silver Lake Partners in backing billionaire Mukesh Ambani’s bid to transform Reliance into a digital services giant and reduce its dependence on revenue from oil refining and petrochemicals.

Read more: Reliance Says It’s Net-Debt Free After $15 Billion Jio Deals

“Through this investment, we are excited to help fuel digital transformation in India, where Intel maintains an important presence,” Wendell Brooks, Intel Capital president, said in the statement.

Morgan Stanley acted as financial adviser to Reliance Industries.

Ambani’s digital unit has sold about 25% in stakes and has said it paid net debt down to zero earlier than the March 2021 target it set last year. Jio is expected to use its roughly 400 million wireless phone subscribers as the cornerstone of an e-commerce and digital services business.

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The slew of stake sales have helped Reliance Industries shares double since late March, and the stock traded at a record high on Friday.