(Repeats from Tuesday)
* Reliance Retail seeing major investor interest-sources
* Mubadala in talks for up to $1 bln stake-sources
* Reliance digital arm recently raised more than $20 bln
NEW DELHI/DUBAI, Sept 29 (Reuters) - Abu Dhabi state fund
Mubadala Investment Co is in advanced talks to invest up to $1
billion in the retail division of India's Reliance Industries
Ltd, two sources told Reuters, as investor interest in
the Indian company surges.
Reliance Retail is on a fund raising spree and has secured
around $1.8 billion in the past few weeks from KKR & Co
and Silver Lake Partners.
Reliance, controlled by Asia's richest man Mukesh Ambani,
has approached investors, who collectively pumped more than $20
billion into its Jio Platforms digital business this year, to
take stakes in its retail business, which has nearly 12,000
stores and sells everything from groceries and electronics to
fashion and shoes.
Mubadala invested around $1.2 billion in Jio Platforms and
its executives have held extensive talks in recent weeks with
Reliance for investing in its retail venture, several sources
familiar with the talks said.
While one source said Mubadala "is ready with" $1 billion
for Reliance Retail and doing due diligence, a second source
said the talks were at an advanced stage and said the investment
could be anywhere between $500 million and $1 billion.
A Reliance spokesman said the company cannot confirm or
deny any transaction, adding: the company evaluates various
opportunities on an ongoing basis.
Mubadala declined to comment. It is the second-biggest state
investor in Abu Dhabi after Abu Dhabi Investment Authority,
managing about $240 billion in assets.
For Mubadala, any further investment into Reliance will come
months after it said it was under-invested in Asia and planned
to expand its portfolio in the region.
STRONG INVESTOR INTEREST
Reliance is likely to soon announce a few investments into
its retail unit, and those will be from investors who recently
invested in its digital arm, one of the sources aware of the
While talks are ongoing with several investors, Reliance
believes Facebook and Google, both of which
invested in Reliance's digital business, are unlikely to put
funds in its retail division due to lack of synergies, another
"Reliance wants the same set of investors ... but some new
investors could come in," the source said.
Japan's SoftBank Group had also expressed interest
in investing in Reliance Retail, but the talks have not moved
forward as the company was prioritising other investors with
which it has struck recent deals, the source said.
SoftBank did not respond to a request for comment.
Ambani's push to seek investments in its retail business
come as the oil-to-telecoms Indian conglomerate has been looking
to expand its e-commerce operations to compete against Walmart's
Flipkart and Amazon.com's Indian business.
A separate source said Amazon and Reliance have also been in
talks, but there was no certainty of a deal on an investment in
"For Amazon, the issue is whether their own ambitions in
India will collide with Reliance's," the source added.
An Amazon spokeswoman said the company has no comment on
speculation about what it may or may not do in the future.
(Reporting by Aditya Kalra and Aftab Ahmed in New Delhi and
Hadeel Al Sayegh in Dubai; Additional reporting by Sankalp
Phartiyal and Rupam Jain. Editing by Jane Merriman)