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Reliance Reportedly Mulls $20 Bln Stake Sale In Retail Unit To Amazon

relianceretail sept10 lt

Indian billionaire Mukesh Ambani's Reliance Industries Limited is in talks to sell 40 percent stake in its retail unit, Reliance Retail Ventures Limited or RRVL, to Amazon.com Inc. for $20 billion, Bloomberg reported.

Meanwhile, American private equity firm Silver Lake Partners announced its investment of 7,500 crore Indian Rupees or about $1 billion for a 1.75 percent equity stake in RRVL. Silver Lake's investment values RRVL at a pre-money equity value of 4.21 lakh crore rupees. Earlier this year, Silver Lake had made a $1.35 billion investment in Jio Platforms, owned by Reliance Industries.

Following these news, Reliance Industries shares were up around 6.7 percent in Indian trade.

If the deal materializes, it would be one of the biggest investments for Amazon.

KKR & Co. is also looking to invest $1 billion in Ambani's retail unit.

There are also reports that Reliance Industries is looking to raise over Rs.60,000 crore by selling a 15 percent stake in RRVL to some private equity investors and sovereign wealth funds, including the Abu Dhabi Investment Authority and Saudi Arabia's Public Investment Fund.

RRVL recently acquired Future Group's Retail & Wholesale Business and the Logistics & Warehousing Business for lumpsum aggregate consideration of 24,713 crore Indian rupees.

Reliance Retail Limited, a subsidiary of RRVL, operates India's largest, fastest growing and most profitable retail business with around 12,000 stores. For the year ended March 31, 2020, RRVL reported a consolidated turnover of $21.7 billion and net profit of $726.4 million.

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