Jio Financial plans $4.33b deal with Reliance Retail

BENGALURU, May 26 (Reuters): Jio Financial Services (JFS) is seeking shareholder approval for its unit to acquire equipment worth 360 billion rupees ($4.33 billion) from the retail arm of Reliance Industries as the financial services provider plans to enter the device leasing business, a postal ballot notice said.

Under the proposed deal, the JFS unit called Jio Leasing Services will buy telecom equipment and devices that usually include routers and cell phones.

The JFS subsidiary will rent out the equipment it buys to customers of Reliance Jio Infocomm - Reliance's telecommunications arm - the financial services company further said. Jio Financial, spun out of billionaire Mukesh Ambani-led Reliance Group last year.