(Repeat from Tuesday)
* Reliance Retail sees the main sources of investor interest
* Mubadala in talks for up to $ 1 billion in stake sources
* Reliance’s digital arm recently raised over $ 20 billion
By Aditya Kalra, Hadeel Al Sayegh and Aftab Ahmed
NEW DELHI / DUBAI, September 29 (Reuters) – Abu Dhabi state-owned Mubadala Investment Co is in advanced talks to invest up to $ 1 billion in India’s retail division Dependency industries Ltd, two sources told Reuters, as investor interest in the Indian company increased.
Reliance Retail is fundraising and has raised around $ 1.8 billion in recent weeks from KKR & Co KKR.N and Lake Partners. Controlled by Asia’s richest man, Mukesh Ambani, approached investors, who collectively injected more than $ 20 billion into his digital business Jio Platforms this year, to take stakes in his retail business , which has nearly 12,000 stores and sells everything from groceries and electronics to fashion and shoes. has invested around $ 1.2 billion in Jio Platforms and its executives have had extensive discussions in recent weeks with Reliance to invest in its retail business, several sources familiar with the discussions said.
While one source said Mubadala “is ready with” $ 1 billion for Reliance Retail and doing due diligence, a second source said negotiations were at an advanced stage and said the investment could be between $ 500 million and $ 1 billion.
A spokesperson for Reliance said the company could neither confirm nor deny any transactions, adding: “The company is constantly evaluating various opportunities.”
Mubadala declined to comment. It is the second-largest state investor in Abu Dhabi after the Abu Dhabi Investment Authority, managing around $ 240 billion in assets.
For Mubadala, any additional investment in Reliance will come months after he said he was under-invested in Asia and planned to expand his portfolio in the region. INTEREST OF INVESTORS
Reliance is likely to announce some investments in its retail unit soon, and those will come from investors who have recently invested in its digital arm, one of the sources familiar with the matter said.
While discussions are underway with several investors, Reliance believes Facebook and Google, both of which have invested in Reliance’s digital business, should not invest in its retail division due to lack of synergies, a another source said.
“Reliance wants the same group of investors … but some new investors could come in,” the source said.
Japan’s SoftBank group had also expressed interest in GossipMantri in Reliance Retail, but talks did not move forward as the company prioritized other investors with whom it had recent deals, the source said.
SoftBank did not respond to a request for comment.
Ambani’s efforts to seek investment in its retail business come as India’s oil and telecommunications conglomerate sought to expand its e-commerce business to compete with Walmart’s (NYSE 🙂 WMT.N Flipkart and operations Indian from Amazon.com.
A separate source said Amazon and Reliance are also in talks, but there was no certainty of an agreement on an investment in Reliance Retail.
“For Amazon, the question is whether their own ambitions in India will conflict with those of Reliance,” the source added.
An Amazon spokesperson said the company had no comment on speculation about what it might or might not do in the future.