Google to buy 7.7% stake in Jio; to make affordable smartphones: Mukesh Ambani
Mumbai: Google has agreed to invest Rs 33,737 crore for a 7.7 percent stake in Reliance Industries' technology venture and to cooperate on technology initiatives, including development of affordable smartphones, billionaire Mukesh Ambani said on Wednesday.
Addressing RIL's first-ever online annual general meeting, which had an unprecedented 3.2 lakh shareholders attending from 550 cities in 48 countries through the newly-minted JioMeet platform, he said Reliance Jio has developed an indigenous 5G solution which can be exported globally.
Also, the group's petrochemical and retail business has received strong interest from financial and strategic investors on lines of the massive Rs 1.52 lakh crore that the technology venture Jio Platforms amassed in less than three months from the likes of Facebook and Google.
The only disappointment for investors was on the company's talks for a sale of a 20 percent stake in oil-to-chemical (O2C) business to Saudi Aramco for an asking of USD 15 billion, with Ambani saying talks have "not progressed as per the original timeline".
He, however, hastened to add that the company has raised enough money from stake sale in Jio Platforms and fuel retailing business as well as a rights issue to achieve the net-debt free target nine months ahead of schedule.
Achieving net-debt free status was one of the objectives behind Asia's richest man announcing stake sale talks on O2C business to Aramco in the company's last annual general meeting in August 2019.
On Wednesday, he neither said if the talks with Aramco were on track nor did he give a new deadline.
All he said was that RIL, operator of the world's largest refining complex, will replace transportation auto fuels with clean electricity and hydrogen as it set a target to become net carbon-zero by 2035.
"We are delighted to welcome Google as a strategic investor in Jio Platforms. We have signed a binding partnership and an investment agreement under which Google will invest Rs 33,737 crores for a 7.7 percent stake in Jio Platforms," Ambani, 63, said.
California-based Alphabet Inc joins Facebook Inc, which opened the investment cycle in Jio Platforms by picking 9.99 percent stake for Rs 43,573.62 crore, as well as chipmaker Intel Corp and Qualcomm Inc.
With Google coming on board, Reliance has completed its target of capital raising for Jio Platforms, he said.
With this deal, Reliance has sold 32.84 percent stake in Jio Platforms Ltd - the unit that houses India's youngest but largest telecom firm Jio Infocomm and apps, to 13 marquee firms for a total of Rs 1,52,055.45 crore.
Proceeds from the stake sales in Jio Platforms, along with the Rs 53,124 crore raised in a rights issue in June and sale of a 49 percent stake in its fuel retail network to BP last summer for Rs 7,629 crore will help the company become net debt-free, Ambani said.
The cumulative fund raising by Reliance in less than three months is now Rs 2,12,809 crore as compared to net debt of Rs 1,61,035 crore as on March 31, 2020.
Ambani, who has catapulted his way to become the sixth richest man in the world with USD 72.4 billion, surpassing Tesla's Elon Musk and Alphabet co-founders Sergey Brin and Larry Page, said his group can "design entry-level 4G or even 5G smartphone for a fraction of its current cost".
"Google and Jio are partnering to build an Android-based smartphone operating system," he said. "Through this partnership, we are confident that we can accelerate the national mission of putting a smart device in the hands of every Indian."
As many as 350 million Indians still use a 2G feature phone.
"Our mission with Android has always been to bring the power of computing to everyone, and we've been humbled by the way Indians have embraced Android over recent years," said Google chief executive Sundar Pichai. "The time is right to increase our commitment to India significantly, in collaboration with local companies, and partnership with Jio is the first step."
Google and Jio are partnering to build an Operating System that could power affordable 4G/5G smartphone. Also, JioMart, online shopping portal, and WhatsApp will be working closely to enable customers seamlessly transact with mom-and-pop stores.
He also announced broadband for enterprises and small businesses and Narrowband Internet-of-Things (NBIoT).
Jio Platforms - which is also amassing a wide range of services from music streaming to online retail and payments - is expected to use its 388 million mobile phone subscribers as the cornerstone of an e-commerce and digital services business to rival Amazon and Walmart's Flipkart.
Jio, which is at the centre of Ambani's ambition to create a homegrown technology behemoth akin to China's Alibaba, has become Reliance's growth engine, combining with the company's fast-growing retail arm to help in offsetting the decline in oil and petrochemicals.
The oil-telecom-to-retail conglomerate also announced acceleration in the rollout of JioMart - its eCommerce venture.
"We have received strong interest from strategic and financial investors in Reliance Retail. We will induct global partners and investors in Reliance Retail in the next few quarters," he said.
Also, Reliance has been "approached by global companies for strategic partnerships in its petrochemical business, including in utilising feedstocks," Ambani said.
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Real Madrid fines Valverde and Tchouaméni half a million euros each for altercation
Barcelona (AP): Real Madrid slapped players Federico Valverde and Aurélien Tchouaméni with half-a-million-euro ($588,000) fines on Friday for their altercation during practice.
The massive fines came a day after the midfielders tussled when the team trained. Valverde said in a post on social media on Thursday that no punches were thrown. But Valverde knocked his head on a table and he suffered a small cut that required a brief hospital visit.
On social media, Valverde initially called it a “meaningless fight” with a teammate and said “everything has been blown out of proportion."
His employers, however, considered it a significant enough breach of team discipline to nail both Valverde and Tchouaméni with fines that bite even the bank account of a top soccer player. The half-a-million euro penalties reflect the reputational damage the club was enduring in a chaotic end to a disappointing season.
In a statement, the 15-time European champion said its disciplinary action was concluded after both players expressed to the club “their complete remorse for what happened and apologized to one another.”
Madrid added they also apologized to their teammates, the coaching staff and club supporters, as well as showing their willingness to accept whatever disciplinary action the club deemed “opportune.”
Tchouaméni was back training with Madrid on Friday, two days before they play at Barcelona in a clasico. Madrid has to win otherwise Barcelona will be crowned La Liga champion.
After being notified of the fine, he posted a public apology to the club and its fans on social media.
“What happened this week in training is unacceptable,” Tchouaméni wrote. "I say this while thinking about the example we are expected to set for young people, whether in football or at school.
“Above all, I am sorry for the image we projected of the club.”
Valverde was not at practice due to the head knock.
Both players are set to play in the World Cup next month, with Tchouaméni playing for France and Valverde for Uruguay.
Chaotic end to a poor season
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The run-in between the players, who for seasons have played side by side in Madrid's midfield, came after they argued this week in previous training sessions. But tempers boiled over on Thursday. Spanish media was rife with reports that the players previously disagreed over the club's decision to let coach Xabi Alonso go after just months on the job.
It was not the only altercation involving Madrid players during training this week. Álvaro Carreras confirmed he was in a “minor” incident with a teammate. Spanish media said he and fellow defender Antonio Rüdiger got into a scuffle.
Álvaro Arbeloa, the coach who was promoted from Madrid's reserve team when Alonso was fired in January, will face tough questions on what went wrong inside the changing room when he gives a press conference on Saturday ahead of the clasico at Camp Nou.
Madrid is facing a second consecutive campaign without a major trophy amid rumors in the Spanish media that club president Florentino Pérez is considering bringing back Jose Mourinho to straighten out his underperforming team.
