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An end to the Telegraph saga? Abu Dhabi-backed RedBird IMI — a JV between International Media Investments (IMI) and US private equity firm Redbird Capital Partners — is selling its stake in Telegraph Media Group (TMG) to RedBird Capital, according to a press release. This resolves a two-year ownership deadlock triggered by the previous administration’s decision to block RedBird IMI’s takeover on concerns of foreign entity ownership of local press. There’s no publicly available information on the banks that advised on the transaction.
RedBird Capital to become majority shareholder: The agreement would see RedBird Capital, which owns 25% of the JV, take majority control of the UK publication in a GBP 500 mn buyout, alongside a consortium of British media investors.
IN CONTEXT- RedBird IMI — which took over the Telegraph from Barclays less than two years ago through a GBP 600 mn convertible loan — faced regulatory pressure to unwind its position under previous rules that capped foreign state ownership to 5%. The firm already exited Telegraph’s sister company the Spectator, which was sold to bn’aire Paul Marshal in a GBP 100 mn transaction late last year.
Not quite out the door: IMI is still expected to retain a minority holding in the Telegraph, subject to upcoming UK legislation, the release read. The new rules, which are still in the works, should allow foreign sovereign investors to hold up to a 15% stake in British media outlets.
RedBird Capital’s play: The US PE firm plans to invest significantly in digital transformation, subscription growth, and the development of new content verticals, with a particular focus on expanding in the US market, the press release said. Its strategy centers on leveraging advanced analytics and AI to ramp up the publication’s digital experience. It’s also in talks with British media investors to join as minority shareholders, the statement said.
The story also got ink from Bloomberg, Reuters, Financial Times, BBC and the NYT.
IN OTHER M&A NEWS-
IFA Hotels sells 50% of UAE unit: Dubai-listed International Financial Advisors’ subsidiary IFA Hotels and Resorts entered into a share and purchase agreement (SPA) to sell 50% of its UAE subsidiary to an undisclosed buyer, based on a valuation of AED 110 mn, according to a filing (pdf) to the DFM. The buyer already paid an AED 35 mn advance.
