Reliance Strategic Business Ventures Ltd (RSBVL), a wholly owned subsidiary of Reliance Industries Ltd (RIL), has acquired additional equity stake in its investee company skyTran Inc, the company announced on February 28.
The additional equity stake were acquired by RSBVL for a consideration of $26.76 million, increasing its shareholding to 54.46 percent on a fully diluted basis, said the statement.
skyTran, a technology company incorporated under the laws of Delaware, US, in 2011, has "developed breakthrough passive magnetic levitation and propulsion technology for implementing personal transportation systems aimed at solving the problem of traffic congestion globally", the statement said.
RIL Chairman Mukesh Ambani said the acqusition of majority equity stake in skyTran reflects his conglomerate's commitment to invest in "building futuristic technologies that would transform the world".
"We are excited by skyTran’s potential to achieve an order of magnitude impact on highspeed intra and inter-city connectivity and its ability to provide a high speed, highly efficient and economical ‘Transportation-As-A-Service’ platform for India and the Rest of the World," he added.
"We firmly believe that non-polluting high speed personal rapid transportation system will help facilitate environmental sustainability through efficient use of alternative energy and make an impactful reduction in air and noise pollution," Ambani further said.
For the deal with skyTran, the law firms Covington & Burling LLP and Freshfields Bruckhaus Deringer US LLP acted as legal counsel and IP counsel respectively to Reliance Industries, the company noted.Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd that publishes Moneycontrol.com