Companies

Reliance Ind arm ups stake in US-based skyTran for $27 m

Our Bureau Mumbai | Updated on February 28, 2021

Mukesh Ambani says committed to high-speed mobility solutions

Reliance Strategic Business Ventures Ltd (RSBVL), a wholly-owned subsidiary of Reliance Industries Ltd (RIL), has acquired an additional 28.16 per cent stake in US-based technology company skyTran Inc for $26.76 million.

Following the deal, RSBVL’s stake in Delaware-based skyTran, which is backed by global venture capital investors such as Innovation Endeavors, has increased to 54.46 per cent.

skyTran has developed technologies for smart mobility solutions, including passive magnetic levitation and propulsion technology for personal transportation systems, aimed at reducing traffic congestion globally, RIL said in a statement.

“Our acquiring majority 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 high-speed 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. 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,” RIL Chairman and Managing Director Mukesh Ambani said.

Covington & Burling LLP and Freshfields Bruckhaus Deringer US LLP were the legal and intellectual property counsels to RIL.

This is the fourth time RIL has increased stake in skyTran. RIL, which had first acquired a 12.7 per cent stake in skyTran in October 2018, hiked it to 17.37 per cent in November 2019 and to 26.3 per cent in April 2020.

 

Published on February 28, 2021

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