Former Chancellor Nadhim Zahawi is assembling a substantial £600 million bid for the Telegraph Media Group, seeking collaboration from key billionaire investors.
- Zahawi seeks support from the Reuben family, among others, for his bid.
- The Telegraph Media Group is up for sale again after previous foreign ownership concerns.
- The sale process, involving multiple bidding rounds, is expected to continue over the coming weeks.
- Other interested bidders include private equity firms and international news organisations.
Nadhim Zahawi, the former Chancellor, is in the process of securing backing for a notable £600 million bid aimed at acquiring the Telegraph Media Group. His backers include prominent figures such as the Reuben family, who are significant stakeholders in Newcastle United FC.
This bid is part of a renewed auction for the Telegraph Media Group, which entered receivership last year amidst £1.2 billion in overdue loans. The newspaper group had been under Barclay family control for two decades before financial difficulties led to its current predicament.
Zahawi has a history of close ties with the Barclay family, having acted as an intermediary in their efforts to regain control of the titles from the UAE. His recent appointment as chairman of Very Group, owed by the Barclays, underscores his continued association with the family.
The previous attempt to sell the Telegraph was halted due to government concerns over foreign state ownership when RedBird IMI, backed by Abu Dhabi and led by former CNN boss Jeff Zucker, repaid a Lloyds loan to take control. The UK government subsequently blocked this acquisition, citing concerns over foreign influence.
The bidding process for the Telegraph Media Group has restarted, with the first-round deadline recently expiring. RedBird IMI is reassessing its strategy and utilising advisers from boutique banks Robey Warshaw and Raine. Multiple bidding rounds are expected before a final decision is reached.
Other potential bidders include private equity firms and international news organisations, such as Belgium’s Mediahuis. Additionally, RedBird Capital, an American private equity group, may move forward with an offer by buying out RedBird IMI’s stake, which is a joint venture with International Media Investments from Abu Dhabi.
Nadhim Zahawi, who arrived in Britain as a child refugee from Iraq, is known for his extensive business connections in the Middle East. As the co-founder of the polling company YouGov, Zahawi has held various lucrative consulting roles with oil companies and maintained strong ties to the Gulf States. He stood down as an MP at the last general election.
This complex sale process of the Telegraph Media Group continues to unfold, with significant interest from various international and private equity bidders.
