SAUDI ARABIA’S WEALTH FUND BUYS 2.04% STAKE IN INDIA’S RELIANCE RETAIL VENTURES LIMITED

Fri 06 November 2020:

Saudi Arabia’s Public Investment Fun announced Thursday that it had acquired 2.04 percent of India’s Reliance Retail Ventures Limited for total investment of $1.3 billion.

The PIF said the investment would strengthen the fund’s presence in the Indian economy and retail market.

“The investment in RRVL follows an earlier acquisition of a 2.32 per cent stake in Jio Platforms, the digital services subsidiary of Reliance Industries,” PIF said in a statement.

PIF bought the stake in Reliance’s Jio Platforms – which comprises telecoms venture Jio Infocomm and music and movie apps – in June for nearly $1.5 billion. Reliance, controlled by billionaire Mukesh Ambani, has approached investors to take stakes in its retail business.

“We are pleased to be furthering our trusted partnership with Reliance Industries, the leading player in some of India’s most exciting sectors. This transaction demonstrates PIF’s commitment to investing and partnering for the long-term with innovative businesses around the world that lead and transform their sectors,” Yasir al-Rumayyan, governer of Saudi Arabia’s Public Investment Fund (PIF) and chairman of Saudi Aramco said in a statement obtain by Al Arabiya English.

The PIF is the centerpiece of Saudi Arabia Crown Prince Mohammed bin Salman’s ambitious Vision 2030 program that seeks to change the fund into a giant investment vehicle to support the Kingdom’s economic diversification away from oil by investing in exciting new industries around the world.

Reliance, controlled by Asia’s richest man, Mukesh Ambani, has been looking for investors as it seeks to expand its business online to take on its competitors, including Walmart’s Flipkart and Amazon’s Indian arm, Reuters had previously reported.

“We at Reliance have a long-standing relationship with the Kingdom of Saudi Arabia. PIF is at the forefront of the economic transformation of the Kingdom of Saudi Arabia. I welcome PIF as a valued partner in Reliance Retail,” Ambani said in the statement.

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