Barclay family reclaims Telegraph newspaper after suport from Abu Dhabi investor

The Barclay family has successfully regained control of the influential Telegraph newspaper in the UK, following a collaboration with Abu Dhabi-backed RedBird IMI.

The family managed to repay the 1.2-billion-pound debt to Lloyds Bank, securing the newspaper and the Spectator political magazine.

Thesuccessful debt resolution is expected to translate into a higher pay-out for shareholders in February, as Lloyds anticipates writing back more than 500 million pounds on the value of the loans.

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While the Barclay familycelebrated their successful bid to regain control of the media outlets closely read by the governing Conservative Party, a proposed transfer of the newspaper to RedBird IMI now faces uncertainty.

RedBird IMI is led by former CNN executive Jeff Zucker and backed by Mansour bin Zayed Al Nahyan, a member of the ruling family of Abu Dhabi.

Under the initial plan, RedBird IMI was poised to swiftly gain control of the assets through a debt-for-equity swap.

The British government intervened last week, officially blocking the move and initiating an investigation into whether any takeover would impede freedom of expression under the new owner.

Reuters cited Culture Secretary Lucy Frazer, who expressed the need for examinations by competition and media regulators, stating, "With the UAE's increasingly influential position...the risk for interference in Britain's national conversation seems self-evident if the acquisition is allowed to go ahead."

The planned auction had attracted interest from potential buyers, including DMGT, Mediahuis, and notable individuals like Paul Marshall and Daniel Kretinsky.

(With inputs from Reuters)

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