The Barclay family has effectively regained control of the influential Telegraph newspaper in the UK through a collaboration with Abu Dhabi-backed RedBird IMI. Reuters reports that twin brothers David and Frederick Barclay, who acquired the newspaper in 2004, played a pivotal role in this ownership turnaround.
Following David’s demise in 2021, his son assumed management of his former assets. The family successfully repaid the 1.2-billion-pound debt to Lloyds Bank, securing ownership of the Telegraph and the Spectator political magazine.
While the Barclay family celebrated their triumph in reclaiming control, the proposed transfer of the newspaper to RedBird IMI faces uncertainty. The British government intervened last week, officially blocking the move and launching an investigation into whether any takeover would impede freedom of expression under the new owner.
Media Secretary Lucy Frazer, cited by Reuters, emphasized the need for examinations by competition and media regulators, stating, “With the UAE’s increasingly influential position…the risk for interference in Britain’s national conversation seems self-evident if the acquisition is allowed to go ahead.”
The battle for the right-leaning newspaper and the Spectator magazine intensified earlier this year when Lloyds took control of the titles. To regain control of media outlets closely followed by the Conservative Party, the Barclay family collaborated with RedBird IMI to settle the debt.
Facing a looming court hearing and a Monday deadline, the family’s urgency was heightened, with the threat of an auction proceeding if the funds were not delivered. KBW banking analyst Ed Firth views the repayment as a “great outcome” for Lloyds, anticipating a higher pay-out for shareholders in February.
Under the initial plan, RedBird IMI aimed to swiftly gain control through a debt-for-equity swap. However, the government’s intervention halted this process, raising questions about the future ownership structure of the Telegraph. RedBird IMI, led by former CNN executive Jeff Zucker and backed by Abu Dhabi ruling family member Mansour bin Zayed Al Nahyan, faced setbacks in its ambitious plan.
Despite interest from potential buyers such as DMGT, Mediahuis, Paul Marshall, and Daniel Kretinsky, the government’s move has created uncertainty about the Telegraph’s ownership. KBW banking analyst Ed Firth sees the repayment as a positive outcome for Lloyds, anticipating a higher pay-out for shareholders in February, with the bank expecting to write back over 500 million pounds on the value of the loans.
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