Reliance Retail In the Crosshairs
Reliance Industries continues to shed stakes in its subsidiaries as it raises funds to transition towards the new digital economy. In the most recent maneuver, the company has offered Amazon a $20 billion stake in its retail arm, Reliance Retail. The move comes having recently acquired a meaningful amount of assets from Future Group in a way that would essentially consolidate India's #1 and # 2 players into a much larger market position.
The latest offers comes as the company recently stoked interest from Silver Lake and KKR to invest up to $1 billion for the same division.
Should Reliance be able to carve out another capital raise out of this subsidiary, Reliance should be in an impressive position to heavily invest into its ecommerce ambitions. It would also be making a pretty sizable statement since the funds would essentially be used to compete against Amazon in India in a more meaningful manner. Soo.... yeah. We'll see how this plays out.
For Americans wanting to invest in Reliance Industries, one can only gain direct exposure to them via GDRs in London provided your brokerage provides international market exposure.
Posted Using LeoFinance