UAE’s ADIA to Buy Stake in Ambani’s Retail Unit for $597 Million

Abu Dhabi Funding Authority agreed to purchase an extra stake in Indian billionaire Mukesh Ambani’s quickly increasing retail unit for 49.7 billion rupees ($597 million).

ADIA will purchase a 0.6 % stake in closely-held Reliance Retail Ventures Ltd, based on an change submitting late Friday from guardian Reliance Industries Ltd. The transaction values India’s largest retailer at pre-money fairness worth of 8.38 trillion rupees, the submitting stated.

The United Arab Emirates-based agency had invested $750 million in Reliance Retail in October 2020 and one other $507 million the identical month within the conglomerate’s fiber-optic property.

The most recent funding from ADIA comes after international funding agency KKR & Co. invested an extra $250 million in Ambani’s retail enterprise that rivals international opponents together with Amazon.com Inc. and Walmart Inc. on the planet’s most populous nation. Earlier than that, Qatar Funding Authority acquired a 0.99 % stake in Reliance Retail for $1 billion in August.

Ambani additionally informed shareholders in August that the retail enterprise will line up extra worldwide buyers.

Now headed by Ambani’s daughter, Isha, Reliance Retail has undertaken a collection of acquisitions to determine a powerful foothold in India’s burgeoning retail area to compete with Amazon.com Inc. and Walmart Inc.

Reliance Retail raised over $6 billion three years in the past from buyers that embody sovereign wealth funds throughout the Center East and Singapore together with Common Atlantic and Silver Lake Companions.

By PR Sanjai

Study extra:

Qatar Investment Authority Invests $1 Billion in India’s Reliance Retail Ventures

The Gulf sovereign wealth fund will purchase a 1 % stake in Mukesh Ambani’s conglomerate, almost doubling its valuation to $100 billion from its final funding spherical in 2020.