Abu Dhabi fund buys $750m stake in retail arm of Indian giant Reliance
A wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) will invest 55.1 billion rupees ($750 million) in Reliance Industries’ retail arm.
ADIA will buy a 1.2 percent stake in Reliance Retail Ventures, according to a statement, valuing the business at 4.29 trillion rupees.
Abu Dhabi Investment Authority and Mubadala Investment Company understood to be in discussions with Indian giant
Last week, Arabian Business quoted sources saying that both ADIA and Mubadala were keen to buy stakes. Mubadala announced its $844 million deal last week.
With the latest investment, RRVL has raised 377.1 billion rupees from global investors including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG and ADIA in less than four weeks.
Mubadala says its investment will translate into a 1.40% equity stake in Reliance Retail Ventures Limited
Reliance Retail runs supermarkets, India’s largest consumer electronics chain, a cash-and-carry wholesaler, fast-fashion outlets and an online grocery store called JioMart.
It reported 1.63 trillion rupees in revenue in the year through March. The unit operates almost 12,000 stores in nearly 7,000 towns.
Mukesh Ambani, chairman and managing director of Reliance Industries, said: “We are delighted with ADIA’s current investment and continued support and hope to benefit from its strong track record of over four decades of value creation globally.”
Hamad Shahwan Aldhaheri, executive director of the Private Equities Department at ADIA, added: “Reliance Retail has rapidly established itself as one of the leading retail businesses in India and, by leveraging both its physical and digital supply chains, is strongly positioned for further growth.
“This investment is consistent with our strategy of investing in market leading businesses in Asia linked tothe region’s consumption-driven growth and rapid technological advancement.”