Former chancellor Nadhim Zawawi approached a number billionaires about funding a possible £600m bid to buy the Telegraph and Spectator magazines.
Zahawi decided to not run again for his Stratford-on-Avon constituency at the general elections. He was initially involved as a middleman in introducing a United Arab Emirates-backed Consortium to the Barclay Family, which allowed them to pay £1.16bn of loans last year and take control of the business that is heavily indebted from Lloyds Banking Group.
RedBird IMI had been tipped as the likely candidate to take over the media group.
After the British government passed legislation prohibiting foreign states and their associated individuals from owning newspapers in the UK, RedBird IMI re-offered the titles for sale.
Zahawi is said to be in negotiations with International Media Investments about a possible bid for the newspapers. Zahawi was appointed chair of Barclay’s family-owned retailer Very Group in May. IMI, an Abu Dhabi investment vehicle, holds the majority of RedBird IMI.
Sky News reported that Zahawi had approached the Reuben Family. The family owns an extensive property portfolio and a stake at Newcastle United Football Club.
RedBird IMI set the deadline for the first round bids of the titles at last Friday. It’s not clear if Zahawi is taking part in the auction.
Other media groups in the frame are David Montgomery’s National World, Lord Saatchi (a former cochairman of the Conservative Party and cofounder of advertising group M&C Saatchi) and Mediahuis of Belgium.
CVC Capital Partners – the private equity group that is behind the Six Nations Rugby tournament as well as English Premiership Rugby – also considered a bid.
Lord Rothermere , owner of the Daily Mail , pulled out of ‘s auction earlier this month due to his fears that he would be drawn into a complex and long battle in order to enable any takeover to override the competition and overcome political hurdles.
Last week, it was revealed that Sir Paul Marshall – the libertarian who backs GB News, UnHerd and GB News – is also rethinking his interest in submitting a separate bid for The Telegraph.
Marshall could join a larger consortium to acquire the titles or limit his interest to the acquisition of the Spectator Magazine.
In June, it was revealed the parent company of Telegraph Media Group had a loss last year. This is because it put aside almost £280m for loans given to the Barclay Family that may not be paid back.
The provision caused the group to lose £244.6m (£33.30m) in 2023, in spite of a strong financial performance.
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