Mubadala confirms Dh3.1b deal with India's Reliance Retail
Retailer operates nearly 12,000 stores across India and keeps adding more
Abu Dhabi: Mubadala Investment is making its second multi-billion dirham exposure in Mukesh Ambani’s Reliance this time through a Dh3.1 billion deal for a stake in Reliance Retail Ventures ltd. In June, the Abu Dhabi entity had committed $1.2 billion in Reliance’s telecm and digital portal, Jio.
Reliance Retail generates close to 640 million footfalls across its nearly 12,000 stores across India. The company offers access to farmers and micro, small and medium enterprises to sell their wares through these outlets.
The deal values Reliance Retail at a "pre-money equity value" of 4.28 trillion rupees. Mubadala’s investment will translate into a 1.40 per cent equity stake on a fully diluted basis.
Khaldoon Al Mubarak, Managing Director and Group CEO of Mubadala Investment Company, said: "We are pleased to deepen our relationship with Reliance Industries. Their vision is the inclusive transformation of India’s consumer economy through the power of digitization, creating opportunities and market access for millions of small businesses across the country."
In statement, Ambani said: “We acknowledge their confidence in our mission to strengthen the core of India’s retail sector – the millions of small retailers, merchants and shopkeepers – through the power of technology. Mubadala’s investment and guidance will be an invaluable support in this journey.”