In yet another round of investment, Reliance Strategic Business Ventures Limited (RSBVL), a wholly-owned subsidiary of Reliance Industries Limited (RIL), has bought a majority stake in its a technology company skyTran Inc for an total amount of $26.76 million.
What's the acquisition?
Earlier in 2018, Reliance Industries Ltd had acquired a 12.7 per cent stake in skyTran, and the stake has been increased to 17.37per cent in November 2019 and further up to 26.3 per cent April 2020. Also Read: Mukesh Ambani Reclaims The Title Of Asia's Richest; Dethrones Chinese Billionaire Zhong Shanshan
With this transaction, RSBVL has increased its shareholding to 54.46 per cent on a fully diluted basis, RIL said in a statement, as per IANS agency.
On the fresh investment in the US company, Mukesh Ambani, Chairman and Managing Director of RIL, said: "Our acquiring majority equity stake in skyTran reflects our 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-Service' platform for India and the rest of the World."
The industrialist said, "We 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."
What is skyTran venture?
skyTran is a US technology company formed under the laws of Delaware in 2011. The company is known to have developed a breakthrough passive magnetic levitation and propulsion technology for implementing personal transportation systems. The technology is aimed at solving the problem of traffic congestion globally. The technology has been developed by skyTran to create smart mobility solutions.