Abu Dhabi's Mubadala in talks on $1 billion stake in Reliance's Jio Platforms: sources | WeForNews | Latest News, Blogs Abu Dhabi’s Mubadala in talks on $1 billion stake in Reliance’s Jio Platforms: sources – WeForNews | Latest News, Blogs
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Abu Dhabi’s Mubadala in talks on $1 billion stake in Reliance’s Jio Platforms: sources

Reliance is looking to sell roughly 20% of Jio Platforms through all the private placement deals, the source added.

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NEW DELHI/DUBAI/HONG KONG : Abu Dhabi state fund Mubadala is in talks with Reliance Industries (RELI.NS) about investing around $1 billion in the Indian conglomerate’s Jio platforms, three sources told Reuters.

Twitter (TWTR.N) is separately also in talks with Mumbai-based Reliance to invest more than $1 billion in the digital start-up, which houses music and movie apps as well its telecoms venture Jio Infocomm, another source added on Thursday.

“Clearly Jio’s platform is attracting a wide range of world-class investors, given its enormous potential to serve one of the world’s largest marketplaces,” Mubadala said in an email, without confirming whether or not talks were taking place.

Due diligence on a potential transaction with Reliance was already underway, one of the sources said.

If it goes ahead, the Jio Platforms investment would be the largest in an Indian firm by Mubadala, which is the second-biggest state investor in Abu Dhabi after Abu Dhabi Investment Authority (ADIA), managing about $240 billion in assets.

Reliance and Twitter did not respond.

Jio Platforms has so far already agreed to sell a combined stake of just over 17% through five separate deals with Facebook (FB.O), which spent $5.7 billion on 9.99%, the first to announce its investment in April.

While talks may be taking place with multiple parties, deals may not necessarily materialize and any terms may change, a fourth source, who is familiar with Reliance’s strategy, said.

All four sources declined to be identified because the talks are private.

Reliance plans to wrap up a bulk of the private fundraising by the third quarter of 2020 and then explore a potential public listing in the United States in 2021, one of the sources said.

Both Morgan Stanley (MS.N) and Goldman Sachs (GS.N) are in talks with Reliance about a possible Jio Platforms IPO mandate, the source added.

Reliance executives visited the United States in February to meet potential investors and bankers and it was looking for a valuation of $90 billion to $95 billion, the source said.

However, the source familiar with Reliance’s strategy said that an overseas listing could still be a long way off and that the company had no immediate need for funds after the recent investments in Jio Platforms.

Before making any decision Reliance would also need to have clarity on rules governing direct overseas listings for Indian companies, which are still being formulated by the government.

Global tech firms prefer listing in the U.S. as it provides companies with greater liquidity and wider access to capital.

Such a deal would help boost Jio Platform’s credentials and provide an exit for some of the big investors that have agreed to invest in it, including private equity firms KKR (KKR.N), General Atlantic, Silver Lake and Vista Equity Partners.

India’s Mint newspaper reported on Thursday that Microsoft is also in talks to buy 2.5% of Jio Platforms for $2 billion.

Talks between Reliance and Microsoft had been on since the two companies announced a cloud computing tie-up last year, a fifth source told Reuters.

Reliance is looking to sell roughly 20% of Jio Platforms through all the private placement deals, the source added.

Morgan Stanley declined to comment, while Microsoft, Goldman Sachs did not respond to requests for comment.

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WhatsApp rolls out first-ever global brand campaign in India

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New Delhi, July 4 : WhatsApp on Saturday launched its first brand campaign in India that narrates real stories about how Indians communicate daily on WhatsApp with their closest relationships.

The campaign called ”It”s Between You” gives thrust on WhatsApp”s commitment to privacy, the company said in a statement.

“With WhatsApp”s end-to-end encryption, we come closest to replicating real-life interactions and that”s when we can truly be ourselves. The conversations you have, the jokes you tell and the memories you relive belong to you and deserve to stay between you,” said Avinash Pant, Director, Marketing at Facebook India.

WhatsApp collaborated with Gauri Shinde, a celebrated Indian Bollywood director along with BBDO India to create two 60-seconds ads, each highlighting how WhatsApp”s features like texts, video calls or even a voice message, help replicate in-person conversations and bring people closer.

One ad is based on a true story about an elderly woman and her caregiver, who are now separated from each other.

“From how to bring together the cast and crew that were right for the part and happened to be living together, and directing over a WhatsApp video call, to doing all the post production work without being physically present, it”s been really rewarding,” said Shinde.

The second story is at the other end of the spectrum of emotion, which is a light and fun film about a younger sister giving joyful courage to her elder one through a WhatsApp video call, when the latter feels vulnerable and hesitant to give her a haircut at home.

“WhatsApp is designed to help friends and family communicate as well as help users connect with a business that is important to them,” said the company.

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Govt to levy interest on late payment to MSMEs for GeM purchase

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Nirmala Sitharaman

New Delhi, July 3 : Government departments and agencies will have to pay interest on late payment to vendors, largely MSMEs, for products procured through the Government e-Martketplace (GeM), starting October 1.

Through an office memorandum, the Department of Expenditure of the Ministry of Finance on Friday said that if the payment is not made within 10 days of the Consignee Receipt and Acceptance Certificate (CRAC) being auto generated or issued by the buyer, the concerned department will have to pay interest at the rate of one per cent per month for the delayed payment.

However, this very interest will not go to the MSMEs concerned and instead, will deposited in an account maintained by the GeM, which will be used only for the education of buyers and sellers or public procurement with the prior approval of the Department of Expenditure, said the office memorandum.

“ln order to promote greater discipline and timeliness in payment to vendors, especially #MSMEs, the government has issued an order to levy interest on late payment to vendors on the government e-marketplace. #AatmaNirbharBharat,” said a tweet by Finance Minister Nirmala Sitharaman”s office.

The order will be effective on orders made from October 1, 2020.

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Tomato prices skyrocket to Rs 70/kg in Delhi-NCR

He attributed the hike in the prices of all vegetables and fruits, not only tomatoes, due to the increase in diesel prices, which led to an increase in the transportation cost of vegetables.

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New Delhi, July 3 : With the onset of the monsoon tomato prices soared to Rs 70 per kg in New Delhi and its surrounding areas on Friday.

Crop failure in the rainy season and the late arrival of tomatoes in the mandis (wholesale markets) have led to the price hike. However, the prices are expected to fall after the arrival of the new crop from Himachal Pradesh next week.

A month ago, the price of tomatoes in Delhi’s Azadpur mandi was between Rs 1.25 and Rs 4.75 per kg, while the wholesale price on Friday was Rs 6.44 per kg.

The model rate of tomato was Rs 3 per kg in Azadpur mandi on June 3, which has increased by 10 times to Rs 29 per kg. On July 2, the wholesale price of tomatoes rose to Rs 52 per kg in the mandi, which means there has been an increase of about 995% in the last one month. Due to the rise in wholesale prices, tomatoes were sold at Rs 80 per kg on Thursday in Delhi-NCR and Rs 50.70 per kg in Greater Noida.

Azadpur Agricultural Produce Marketing Committee (APMC) chairman Adil Ahmad Khan said prices have gone up due to late arrival of tomatoes. The quantity of tomatoes received at Azadpur mandi was 528.2 tonne on June 3 while on July 3 it was 281.6 tonne. The quantity has thus been reduced by nearly 50 per cent in a month. Only 241.9 tonne were received on July 2 due to which the wholesale price was Rs 6.52 per kg while the model rate was Rs 32 per kg, Khan added.

He attributed the hike in the prices of all vegetables and fruits, not only tomatoes, due to the increase in diesel prices, which led to an increase in the transportation cost of vegetables.

From next week, the arrival of the new crop from Himachal Pradesh will lead to a decline in the prices of tomatoes. He said at present 90 per cent of the tomatoes in Delhi arrive from Himachal Pradesh while only 10 per cent are received from Haryana and Karnataka.

The consumption of all green vegetables, tomatoes and onions has declined during the past few months because of the shutdown of hotels, restaurants, canteens and dhabas following the nationwide lockdown in the wake of the corona pandemic. This led to a marked fall in prices. The wholesale price of tomatoes had come down to less than one rupee per kg.

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