An agreement to establish a joint venture for the manufacture of electronics between Sanmina Corporation, a US-based company, and the Reliance Industries subsidiary RSBVL has been finalised, with an estimated enterprise value of Rs 3,300 crore.
In the joint venture, Reliance Strategic Business Ventures Limited (RSBVL) will own a 50.1% equity position while Sanmina will hold a 49.9% stake.
To acquire this stake, RSBVL will principally invest up to Rs 1,670 crore in new shares in the Indian business of Sanmina.
With the investment, the company will be financed with more than USD 200 million in cash to support expansion and become a joint venture.
