Telegraph sale agreed ‘in precept’ after two-year possession deadlock

A £500m deal to finish the two-year possession deadlock on the Day by day Telegraph has been agreed “in precept”, it has been introduced.

A consortium led by US agency Redbird Capital was set to take management of Telegraph Media Group (TMG), with state-backed Abu Dhabi funding automobile IMI among the many traders.

The pair’s authentic three way partnership, generally known as RedBird IMI, had agreed to purchase the Telegraph titles in 2023.

However prospects for a deal being signed off had been held up by the earlier Conservative authorities’s subsequent ban on international state possession of UK newspapers.

The row centred on the involvement of IMI’s proprietor Sheikh Mansour bin Zayed Al Nahyan, who’s the proprietor of Manchester Metropolis FC but additionally the vice chairman of the United Arab Emirates.

The ban was primarily based on fears round editorial independence.

Nevertheless, the principles had been relaxed earlier this month by the present authorities, which mentioned a international state-controlled holding of as much as 15% was acceptable.

It’s understood that UK-based media traders are among the many proposed homeowners inside the consortium.

Sky Information’ Metropolis editor Mark Kleinman reported on Monday that the Day by day Mail’s proprietor had been in talks over involvement.

The Telegraph newspaper itself reported that regulatory hurdles remained – an element that would but scupper completion of the deal.

Anna Jones, TMG chief govt, mentioned: “Telegraph Media Group is an award-winning information media organisation, with distinctive journalism at its coronary heart, supported by main business experience, a dedication to innovation and a laser give attention to information to drive technique.

“RedBird Capital Companions have thrilling development plans that construct on our success – and can unlock our full potential throughout the breadth of our enterprise.”

RedBird, whose different UK pursuits embody a ten% stake within the US group behind Liverpool FC, mentioned its development technique would come with “capital funding in digital operations, subscriptions and journalism”.

Its assertion continued: “RedBird will construct on the sturdy monetary foundations established by the present administration group and can work with them to develop the model internationally, with a give attention to the US the place RedBird has a robust strategic presence throughout information, media and sports activities.

“Collectively, RedBird and TMG senior management will work to develop new content material verticals in areas corresponding to journey and occasions to maximise the business alternatives from a rising worldwide and mass prosperous subscriber base.”

Redbird founder Gerry Cardinale added: “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 broaden its subscriber base.

“We imagine that the UK is a superb place to take a position, and this acquisition is a crucial a part of RedBird’s rising portfolio of media and leisure firms within the UK.”