RedBird IMI Agrees Loan Package for Telegraph and Spectator: Concerns Over Abu Dhabi Ties
RedBird IMI, a joint venture between RedBird Capital Partners and United Arab Emirates-based International Media Investments, has agreed to a £600 million loan package with the Barclay family. The loan will enable RedBird IMI to take control of the Telegraph newspaper and Spectator magazine, sparking concerns among Conservative lawmakers due to the fund’s ties to Abu Dhabi.
Lending Agreement and Ownership
As per the agreement, RedBird IMI has the option to convert the loan into equity and plans to exercise this option in the near future, effectively taking over ownership of the Telegraph and Spectator. The loan will also help the Barclay family repay their debts to Lloyds Banking Group, who had previously seized the titles and placed the businesses in receivership.
Passive Role of International Media Investments
RedBird IMI clarified that International Media Investments (IMI), a private investment vehicle for Sheikh Mansour Bin Zayed Al Nahyan, will have a passive role in the acquisition. RedBird Capital will assume management and operational responsibility for the titles, with Jeff Zucker, former president of CNN, leading the way as the Chief Executive of RedBird IMI.
Political Scrutiny and Concerns
Conservative lawmakers are concerned about the involvement of the United Arab Emirates and are urging the UK government to thoroughly examine the UAE’s role in the acquisition. Lawmakers cite concerns about press freedom and the UAE’s stance on Israel, viewing potential UAE influence over the Telegraph as a risk to national security. Senior ministers, including Kemi Badenoch and Tom Tugendhat, have already expressed their concerns.
Regulatory Review and Intervention
RedBird IMI acknowledges that any transfer of ownership will be subject to regulatory review and emphasizes its full cooperation with the government and the regulator. UK Culture Secretary Lucy Frazer may issue a Public Interest Intervention Notice, initiating a study of the deal conducted by British regulators. The Competition and Markets Authority (CMA) and media regulator Ofcom will provide reports on antitrust and media issues to help inform Frazer’s decision.
