<div id="readability-page-1"><div><div><div><div><p>The Abu Dhabi-backed bidder which made two failed attempts to take control of The Telegraph has finally made an official application to sell on its interest.</p><p>More than two years after it first sought a takeover, RedBird IMI has written to Lisa Nandy, the Culture Secretary, to ask permission to transfer it to DMGT, the publisher of The Daily Mail.</p><p>Ms Nandy has lately been seeking a swift end to the uncertainty and will now decide whether to refer the deal for scrutiny by regulators Ofcom and the Competition and Markets Authority (CMA).</p><p>DMGT, owned by the Viscount Rothermere, said the £500m transaction would be funded with new lending from NatWest, its long-term banking partner.</p><p>An initial payment of £400m will be followed by the remaining £100m within two years. DMGT is scheduled to refinance some of its existing debt by 2027, which could provide an opportunity to pay off RedBird IMI.</p><p>The deal appears to be a financial test for DMGT, which has been warned by the credit ratings agency S&amp;P that it could face a downgrade as a result.</p><p>A spokesman for the publisher said: “DMGT is determined to proceed at pace towards a resolution that brings much-needed certainty to Telegraph Media Group employees after a protracted period of instability.</p><p>“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.”</p><p>The move is a significant step towards ending the uncertainty that has gripped The Telegraph since June 2023, when its previous owners, the Barclay family, lost control to Lloyds Banking Group. The bank had lost patience over an overdue loan of £1.2bn.</p><p>RedBird IMI, which is 75pc funded by the vice-president of the United Arab Emirates, Sheikh Mansour bin Zayed Al Nahyan, and 25pc by the US private equity firm RedBird, stepped in in December 2023 to help pay off the Barclay family debt.</p><p>The move derailed an auction planned by Lloyds and cast The Telegraph and its staff into a painful and protracted limbo. The initial takeover attempt by RedBird IMI was blocked by new laws against foreign state ownership of newspapers, introduced after a cross-party outcry over press freedom in parliament.</p><p>Gerry Cardinale, the RedBird chief, emerged this year to lead a new attempt to take control. He sought to corral a consortium which included Lord Rothermere and Sir Leonard Blavatnik, the billionaire industrialist, as minority shareholders. Abu Dhabi was to take a 15pc stake after Labour agreed to water down the ban on foreign state ownership.</p><p>However, over several months, Mr Cardinale appeared to struggle to raise the full £500m required and eventually presented a deal that was likely to trigger an investigation of the risk of foreign state influence. RedBird abandoned the consortium, citing newsroom opposition over its financial ties to the Gulf and China.</p><p>A DMGT spokesman said: “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.”</p><p>RedBird IMI paid £600m for debt secured against The Telegraph and The Spectator magazine, which it sold on last year for £100m. DMGT’s agreement to pay £500m means RedBird IMI will recoup the entirety of its initial outlay despite a widespread view among bankers and media executives that it significantly overpaid.</p><p>Ms Nandy must now decide what investigations DMGT ownership of The Telegraph should face.</p><p>In an initial “phase one” process, Ofcom would consider the effect a merger would have on the public interests in plurality, free expression of opinion and accurate news. The CMA would consider any potential impact on competition.</p><p>In a report on Monday, the media analysts Enders said DMGT’s bid was “a highly positive outcome for the news industry” and a “superior outcome” for The Telegraph compared with private equity ownership.</p><p>DMGT is set to argue that the proliferation of online news sources and digital competition means the deal causes no concerns. The combination would account for 28pc of the paid-for print advertising market and 40pc of print newspaper sales, just ahead of Rupert Murdoch’s News UK.</p><p>Enders said that clearance for the deal could be granted by March at the end of the phase one process. However, it is possible that Ms Nandy will opt to trigger an in-depth “phase two” investigation by the CMA, which would take several months.</p><p>There is likely to be some concern among Labour politicians about the concentration of The Daily Mail and The Telegraph in the same hands. Scrutiny may also take place against an awkward legal backdrop, with DMGT scheduled to defend the privacy claim brought by Prince Harry, Baroness Lawrence of Clarendon and others in the High Court in January.</p></div></div></div></div></div>

DMGT

<p>The Abu Dhabi-backed RedBird IMI has applied to sell its interest in The Telegraph to DMGT, owner of The Daily Mail, for £500m. The deal, funded by NatWest, aims to end uncertainty since the Barclay family lost control in 2023. Culture Secretary Lisa Nandy will decide on regulatory scrutiny. DMGT assures editorial independence and plans significant investment. The acquisition could face a downgrade warning from S&P. Analysts view the bid as positive for the news industry, with potential clearance by March 2024.</p>

Telegraph takeover by Daily Mail owner presented to ministers