A person pulls a copy of The Daily Telegraph out from a newsstand in Paris, France in March 2017. Picture: Hadrian/Shutterstock
Daily Mail owner DMGT has said it is “determined to proceed at pace” in the purchase of The Telegraph.
DMGT, which also owns Metro, The i Paper and New Scientist, has secured funding to allow it to purchase Telegraph Media Group from Redbird IMI.
Redbird IMI has now written to Culture Secretary Lisa Nandy requesting permission to transfer its interest in TMG to DMGT .
It asked Nandy to consent to the sale of its loan agreement and call option for TMG (its right to buy the business).
Nandy must now decide whether to trigger a public interest intervention notice and investigate the impact on competition and market share the DMGT ownership of The Telegraph would have.
DMGT already sells print advertising for The Telegraph via Mail Metro Media and prints The Telegraph newspapers via its joint venture with News UK, Newsprinters.
Redbird IMI, a consortium majority funded by the United Arab Emirates, originally bought The Telegraph by agreeing a deal to pay off £1.2bn in Barclay family debts after the publisher was effectively repossessed in June 2023.
However Redbird IMI was unable to complete the purchase due to the implementation of a new law banning foreign states from owning more than 15% of UK newspapers.
At present Redbird IMI still owns The Telegraph but due to an intervention notice filed by the Government it has no governance in the publication. This is split between independent directors appointed by the DCMS, the Telegraph Media Group board, and the DCMS.
US-based Redbird Capital Partners then struck a £500m deal to take control of The Telegraph itself without as much funding from the UAE-based International Media Investments part of the business, but withdrew this in November due to regulatory uncertainty and negative reporting from The Telegraph itself.
DMGT, which had previously been interested in Redbird’s bid as an investor, quickly signed an agreement to buy the business and has now secured funding.
DMGT said on Tuesday that under the terms of the deal it will acquire the loan agreement and call option over TMG for £500m, paying £400m upfront and the rest within two years.
DMGT said in a statement: “With RedBird IMI having submitted its derogation request to the Secretary of State, DMGT is determined to proceed at pace towards a resolution that brings much-needed certainty to TMG employees after a protracted period of instability.
“DMGT reiterates that the acquisition will be completely free from any prohibited foreign state influence, and that the Telegraph will remain editorially independent, while benefiting from significant investment to accelerate its international growth.
“DMGT’s track record and long-standing commitment to quality, trusted journalism will bolster the UK’s economic growth agenda, and ensure that the Telegraph remains a beacon of authoritative news and commentary amid competition from myriad digital and social media news sources, many of them unreliable, and powerful global online platforms.”
Enders Analysis believes the regulatory clearance “could be granted by March”.
Email [email protected] to point out mistakes, provide story tips or send in a letter for publication on our “Letters Page” blog