Asia's richest man offers Amazon $20bn stake in Reliance retail arm

Asia's richest man offers Amazon $20bn stake in Reliance retail arm

The report published by Bloomberg on Thursday said that Reliance, owned by Asia's richest man Mukesh Ambani, had offered Amazon a 40-percent stake in its retail subsidiary RRVL, citing an unidentified person with knowledge of the matter.

Reliance Retail owns more than 11,000 stores, including convenience shops, supermarkets, apparel, and electronics.

The shares of Reliance Industries were trading almost 7% up on Thursday after reports of global investors and firms such as Amazon, KKR looking to invest in Reliance Retail.

As per an exclusive report by Bloomberg News, Reliance Retail is willing to sell $20 billion worth of stake to Amazon, World's biggest online shopping portal.

Earlier this year, Reliance, controlled by Asia's richest man Mukesh Ambani, sold almost 33% of its Jio Platforms digital business, netting more than $20 billion from companies including Facebook, Alphabet's Google, KKR & Co and Silver Lake Partners. RIL declined to comment on the report when contacted by TOI.

Amazon has held talks about investing in Reliance Retail and expressed interest in negotiating potential deals, according to the report.

Reliance Retail also announced its acquisition of rival Future Group's retail arm in August, for $3.38 billion, and on Wednesday announced a $1 billion investment from U.S. private equity firm Silver Lake Partners, which took a 1.75% equity stake.

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Murphy, in his complaint, also names Miles Taylor, a former deputy chief of staff, as being involved in the intelligence shaping. What Schiff conveniently did not mention is that no more than five weeks earlier he had accused Murphy of lying to Congress.

None the less, if we take this valuation, then for $20 billion investment, Amazon can get upto 35-40% stake in Reliance Retail.

Reuters could not independently verify whether Amazon and Reliance were in fresh discussions. Following this rise, the market capitalisation of RIL crossed Rs 15 lakh crore ($200 billion) mark, making it the first Indian firm to enter this bracket.

Reliance had crossed Dollars 150 billion market capitalisation on June 19, 2020, meaning it has added around USD 60 billion in investor value in less than 60 market days.

Reliance said it did not comment on speculation and rumours, adding it "evaluates various opportunities on an ongoing basis".

Analysts said the deal, if concluded, will bring together the largest offline and online retailers in India and will be positive for both.

"We appeal to the media to carefully examine any such speculative information and safeguard themselves and their readers, many of whom are individual retail investors, from publishing/recycling unfounded and/or incorrect news", the statement said. "Amazon has invested heavily in growing its India business, and giving up when it is already on top does not make sense".

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