Dubai, UAE – The Barclay family is reportedly making a bid to regain control of the Telegraph newspaper group. Months after relinquishing ownership due to financial struggles, the family is said to be enlisting support from investors based in the United Arab Emirates (UAE) to facilitate their comeback, Guardian newspaper on Sunday.
The Telegraph’s parent companies, responsible for publishing the Daily and Sunday Telegraph titles as well as the Spectator, faced financial turmoil and went into receivership earlier this year. This situation presented a rare opportunity for investors to step in and acquire one of Britain’s most prominent newspaper groups.
Among the potential bidders, figures like Lord Rothermere, who owns the Daily Mail, and National World, headed by newspaper veteran David Montgomery, have expressed interest, Guardian report said.
However, the Barclays are proposing a distinct plan: they intend to buy back approximately £1 billion of debt owed by the group to Lloyds Banking Group. This move is believed to be backed by undisclosed investors from Abu Dhabi.
Sources suggest that the Barclays’ proposal involves repurchasing the debt from Lloyds for around £600 million, which would include a discount on the original debt value. Given that Lloyds has previously devalued the debt, this offer could potentially lead to a significant increase in the debt’s paper value.
Lloyds Banking Group, keen to proceed with an auction process managed by Goldman Sachs, aims to begin the auction in the upcoming autumn season. The CEO of Lloyds, Charlie Nunn, emphasized the importance of avoiding a hurried sale.
However, potential hurdles lie ahead for any interested parties due to regulatory concerns. If Lord Rothermere were to submit a bid, it might attract governmental scrutiny regarding media plurality. British ministers have limited powers to intervene in private company takeovers, with the ability to block deals on grounds of media concentration, Guardian reported.
Foreign investment in the Barclays’ bid is also a point of discussion, the newspaper report revealed, as the involvement of overseas investors could raise certain concerns.
The Barclays, according to Guradian report, are reportedly optimistic about convincing Lloyds that their bid would not trigger a lengthy clearance process that might extend beyond the next UK general election, potentially subjecting the acquisition of the right-leaning newspaper group to the political dynamics of a potential Labour government.
Notable individuals like hedge fund mogul Sir Paul Marshall, who supports GB News, and Czech billionaire Daniel Křetínský have also been linked to potential bids.
Previously chaired by Aidan Barclay, nephew of Sir Frederick Barclay, the Telegraph newspaper group witnessed its original takeover in 2004 under the guidance of Sir David and Sir Frederick Barclay.