Mukesh Ambani seeks to cash Jio success, may sell stake to Softbank for this much

Japan’s Softbank is reportedly looking to make a USD 2-3 billion investment in India’s fastest-growing telecom firm Reliance Jio as billionaire Mukesh Ambani looks to deleverage business by selling stakes. This comes on the back of reports of Saudi giant Aramco in discussions to buy a 25 per cent stake in Reliance Industries’ refining and petrochemical business for USD 10-15 billion.

“Softbank has long been seen as a potential investor in Jio,” JPMorgan said in a research report. “For the past 2 years, our conversations with investors have highlighted expectations of Softbank investing in Jio and hence the news flow is not surprising.” It, however, remains to be seen how much money does Softbank actually put in, what the implied equity valuation is and if the e-commerce venture is included in the Jio entity. It was reported that SoftBank’s Vision fund is currently undertaking due diligence to buy a stake in Jio Infocomm, which in September 2016 launched pure play fourth-generation or 4G technology-based telecom services and within a span of two years have become India’s third largest telecom company with highest monthly subscriber additions.