These two deals further outline RIL's strategy that it wants to move into the technology sector as a part of the company's efforts to expand its consumer-facing businesses. Moreover, these two deals, and another one signed earlier to sell stake in its telecom tower arm to Canadian investment firm Brookfield Asset Management for Rs 25,000 crore, clearly indicates that RIL wants to cut debt by selling stakes in its companies. As on March 2019, RIL has a net debt of Rs 1,54,478 crore and the company is aiming to be zero net debt company by end of March 2021.
The deal is subject to due diligence, definitive agreements, regulatory and other approvals. RIL expects that the transaction will close before March 2020. From the Saudi Aramco deal, RIL will receive the proceeds in three stages. Around 50% will come on closing of the deal, 25% after one year of the closing of the deal and 25% in the following year.
What does the deal with Saudi Aramco means to RIL
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