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RedBird Capital Companions has agreed to purchase the Telegraph Media Group in a £500mn deal, signalling an finish to one of the vital protracted and tortuous gross sales of a British newspaper in current historical past.
RedBird mentioned the deal would make it the only real controlling proprietor, leaving Abu Dhabi’s IMI with a minority stake after the British authorities modified the legislation to cease the newspaper from changing into owned by a international state-backed fund.
The sale of the Telegraph was kicked off two years in the past when Lloyds Banking Group seized management following unpaid money owed from the Barclay household, which had owned the Telegraph since 2004.
A deal struck to purchase the Telegraph media group by RedBird IMI, which had three-quarters of its funding from Abu Dhabi, for about £550mn was then blocked by the previous Conservative authorities. The UK authorities final week confirmed plans to set international state possession of British nationwide newspapers at 15 per cent.
Redbird remains to be in talks with numerous UK-based buyers to hitch in a consortium, together with Lord Rothermere’s DMGT, which owns the Each day Mail.
Gerry Cardinale, founder and managing accomplice of RedBird, mentioned: “This transaction marks the beginning of a brand new period for The Telegraph as we glance to develop the model within the UK and internationally, spend money on its know-how and develop its subscriber base.”
Cardinale mentioned he would work with the UK authorities and regulators to finish the acquisition course of. The Monetary Instances first reported the brand new bid to take management of the newspaper by Cardinale and the involvement of Rothermere.
