Former Conservative chancellor Nadhim Zahawi is reportedly putting together a £600m bid for The Daily Telegraph, potentially disrupting the sale of some of Britain’s most influential media assets. According to sources, Zahawi has approached several billionaires for funding, including the Reuben family and Abu Dhabi-based International Media Investments (IMI), which holds a majority of RedBird IMI.
Zahawi, who left parliament in May, believes that the Telegraph has untapped potential for profitability, particularly in the US market. He is said to be in direct talks with IMI, which had previously acquired an option to purchase the newspaper titles last year. It is unclear at this time if Zahawi is participating in the sale process initiated by RedBird IMI through its advisors at Raine Group and Robey Warshaw.
While Zahawi has not yet submitted a formal offer, sources say he is confident in securing the necessary financing to present a competitive bid. The identities of his other potential backers have not been disclosed. Zahawi himself has declined to comment on the matter.
Zahawi has strong business ties in the Middle East, particularly in Abu Dhabi where he has connections to Sheikh Mansour bin Zayed Al Nahyan, the UAE’s deputy prime minister and owner of Manchester City Football Club. He has previously played a key role in negotiations between the Barclay family (former owners of the Telegraph) and RedBird IMI. In May, it was announced that Zahawi would be joining the board of Very Group, a company owned by the Barclay family.
RedBird IMI, led by former CNN president Jeff Zucker, had initially secured a loan owed by the Barclay family to Lloyds Banking Group, positioning them as the front-runner to acquire the media titles. However, the UK government changed media ownership laws to prevent a foreign state from gaining control of British national newspapers, derailing their plans.
Zahawi’s involvement in the potential bid for the Telegraph dates back to last year when he was tipped to chair the newspaper group if RedBird IMI acquired the titles. Despite the Barclay family’s absence in the current negotiations, Zahawi’s close relationship with IMI puts him in a strong position to secure the deal if he can secure the necessary funding. A deadline for initial bids last week reportedly saw several provisional offers from interested parties, including National World and Lord Saatchi.
Previously, it was reported that Sir Paul Marshall, hedge fund tycoon and backer of GB News, was also considering a bid for the Telegraph. However, there is now growing uncertainty about his involvement. Daily Mail & General Trust, the publisher of the Daily Mail, has ruled out a bid, casting doubt on their ability to recoup the £600m they paid for the call option last year.
The future of the Telegraph has been uncertain for over a year, ever since Lloyds took control of its parent companies due to the Barclay family’s failure to make debt repayments. The family had owned the newspaper for nearly two decades, but have faced financial difficulties in recent years. RedBird IMI declined to comment on Zahawi’s reported interest in the Telegraph.
