Abu Dhabi-backed Red Bird IMI said on Tuesday it would sell The Telegraph after canceling its bid to buy the right-wing newspaper group after government intervention made the deal “no longer viable”.
In December, Redbird IMI repaid debts owed by its then owners, the Barclay family, to Lloyds Bank, including a £600 million ($753 million) loan on the title, and acquired the Telegraph and Spectator magazines. effectively took control.
But the deal has already faced a lengthy regulatory investigation and was hit last month when Britain announced it would end foreign government ownership of newspapers.
“Redbird IMI today confirmed that it has withdrawn from the proposed acquisition of Telegraph Media Group and intends to proceed with the sale,” a Redbird IMI spokesperson said.
“We have been in constructive discussions with the government to ensure a smooth and orderly sale of both titles.”
Redbird IMI, led by former CNN executive Jeff Zucker, is backed by Mansour bin Zayed Al Nahyan, a member of Abu Dhabi’s ruling family and owner of soccer club Manchester City.
In December, the government issued a notice stopping Redbird IMI from transferring ownership of the newspaper or changing management or directors while it investigated the deal.
Culture Secretary Lucy Fraser said on Tuesday that she would now allow orderly sales of titles after Redbird IMI announced its intention to withdraw.
“Throughout this process, I have expressed concerns about the potential impact of this agreement on freedom of expression and the accurate representation of news, and have ensured that media freedom is protected while an investigation into those concerns takes place.” “We have taken steps to ensure that this is done,” she said.
Redbird IMI said it is focused on securing the best price for titles close to the ruling Conservative Party.
Previous parties interested in the asset include hedge fund boss Paul Marshall, Daily Mail owner DMGT and private equity buyers.
