RIL's subsidiary Reliance Strategic Business Ventures raises stake in skyTran Inc to 54.46pc

Reliance Strategic Business Ventures, a subsidiary of Reliance Industries, recently said it raised its shareholding in investee company skyTran Inc to 54.46 percent, acquiring an additional equity stake for a consideration of $26.76 million (Rs 196.9 crore).

A technology company incorporated under the laws of Delaware, US, skyTran has developed breakthrough passive magnetic levitation and propulsion technology for implementing personal transportation systems aimed at solving the problem of traffic congestion globally, a statement said.

Reliance Strategic Business Ventures Limited, a wholly-owned subsidiary of Reliance Industries Limited, has acquired an additional equity stake in skyTran Inc. for a consideration of $26.76 million, increasing its shareholding to 54.46 percent on a fully diluted basis.

Commenting on the development, Mukesh Ambani, Chairman and Managing Director, Reliance Industries, said, "Acquiring a majority equity stake in skyTran reflects the company'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.

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The company firmly believes that a non-polluting high-speed personal rapid transportation system would help facilitate environmental sustainability through efficient use of alternative energy and make an impactful reduction in air and noise pollution, he noted.

The proposed skyTran transportation systems would consist of computer-controlled passenger pods running on its state-of-the-art, patented Passive Magnetic Levitation technology, and would use cutting-edge IT, telecom, Internet of Things (loT), and Advanced Materials technologies to transport passengers in a fast, safe, green, and economical manner.

skyTran is also supported by notable global venture capital investors such as Innovation Endeavors.

Law firms Covington and Burling LLP and Freshfields Bruckhaus Deringer US LLP acted as legal counsel and IP counsel, respectively, to Reliance Industries.