
Telegraph sale poised to go ahead after Lords foreign ownership vote
Gerry Cardinale's RedBird Capital is leading a consortium looking to buy the Telegraph for £500m, in a deal that would result in the United Arab Emirates retaining a stake of 15%.
Ministers have been attempting to push through legislation to allow foreign states to own passive stakes of up to 15% in British newspapers, after the previous Conservative administration proposed a law in March last year that set the limit at zero.
That cap meant the joint venture RedBird IMI, which bought the Telegraph Media Group in November 2023, would have to sell up as it is 75% funded by International Media Investments (IMI) – controlled by Sheikh Mansour bin Zayed Al Nahyan, the vice-president of the United Arab Emirates.
The US private equity company RedBird Capital, which contributed the other 25% of funding, has tabled a deal to buy the Telegraph under which IMI would retain a minority stake of up to 15%, although RedBird has said it can fully fund a deal in its own right.
The government's foreign ownership bill would allow this purchase to go ahead but the plan was put at risk on Tuesday after Liberal Democrat peers attempted to block it via a rare 'fatal motion', the strongest opposition that can be taken in the House of Lords, which would force ministers to reintroduce the legislation.
After an almost three-hour debate, peers voted to reject the fatal motion 267 to 155, meaning the 15% cap will pass into law.
However, another statutory instrument will need to be introduced after the parliamentary recess in September to add a rule that will stop foreign investors from buying multiple 15% stakes in British newspapers.
No final deal for the Telegraph has yet been signed, and a takeover will still face regulatory hurdles, including a public interest test that will be triggered by the culture secretary, Lisa Nandy.
It will also be subject to a full investigation by the Competition and Markets Authority.
skip past newsletter promotion
Sign up to Business Today
Free daily newsletter
Get set for the working day – we'll point you to all the business news and analysis you need every morning
Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our
Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply.
after newsletter promotion
However, the government's win in the House of Lords is likely to prompt RedBird Capital to publicly announce its formal bid in the coming weeks.
RedBird Capital – which holds various investments including a stake in the parent company of Liverpool football club and is seeking to jointly acquire the TV and film business Paramount – has said that if the deal goes ahead it would become the sole controlling investor of the Telegraph. It is also set to bring on British partners with small stakes, including the owner of the Daily Mail and Len Blavatnik, the owner of Warner Music and the sports and entertainment streaming service Dazn.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Independent
28 minutes ago
- The Independent
Lammy and Healey to sign bilateral Aukus deal during trip to Australia
The UK will sign a new 50-year bilateral Aukus treaty with Australia as the Foreign and Defence Secretaries visit the country on Friday. David Lammy and John Healey will meet their counterparts at the annual Australia-UK ministerial meeting, or Aukmin, in Sydney, and then travel on to Melbourne to meet businesses involved in the Aukus submarine programme. They will also visit Darwin as the Carrier Strike Group docks in the Northern Territory. The Aukus partnership between the UK, US and Australia involves building nuclear-powered attack submarines – including Australia acquiring its first such fleet – and co-operating in other areas of defence. It was agreed by the three countries in 2021, but the Trump administration has put it under review, raising fears it could pull out. The deal now being signed by the UK and Australia sets out the bilateral aspects of the partnership and how the two countries will work together to deliver their Aukus submarine programmes over the next half century. Defence Secretary Mr Healey said: 'Aukus is one of Britain's most important defence partnerships, strengthening global security while driving growth at home. 'This historic treaty confirms our Aukus commitment for the next half century.' He said people 'not yet born' will benefit from jobs secured through the deal. More than 21,000 people in the UK are expected to be working on the programme at its peak. Foreign Secretary Mr Lammy said the UK-Australia relationship is 'like no other'. He added: 'In our increasingly volatile and dangerous world, our anchoring friendship has real impact in the protection of global peace and prosperity. 'Our new bilateral Aukus treaty is an embodiment of that – safeguarding a free and open Indo-Pacific whilst catalysing growth for both our countries.' The UK's Carrier Strike Group – an international formation of Royal Navy warships, submarines and aircraft – has been taking part in the Talisman Sabre military exercise hosted in Australia. The Australia and US-led military exercise involves more than 35,000 military personnel from 19 countries. Shadow defence secretary James Cartlidge said: 'Aukus was a landmark achievement of the last Conservative government and it's essential that Labour keeps up the momentum, including on industrial collaboration. 'We welcome further progress but this must deliver in practice, both in terms of jobs and strengthened mutual security, at a time of heightened threats.'

Rhyl Journal
34 minutes ago
- Rhyl Journal
Lammy and Healey to sign bilateral Aukus deal during trip to Australia
David Lammy and John Healey will meet their counterparts at the annual Australia-UK ministerial meeting, or Aukmin, in Sydney, and then travel on to Melbourne to meet businesses involved in the Aukus submarine programme. They will also visit Darwin as the Carrier Strike Group docks in the Northern Territory. The Aukus partnership between the UK, US and Australia involves building nuclear-powered attack submarines – including Australia acquiring its first such fleet – and co-operating in other areas of defence. It was agreed by the three countries in 2021, but the Trump administration has put it under review, raising fears it could pull out. The deal now being signed by the UK and Australia sets out the bilateral aspects of the partnership and how the two countries will work together to deliver their Aukus submarine programmes over the next half century. Defence Secretary Mr Healey said: 'Aukus is one of Britain's most important defence partnerships, strengthening global security while driving growth at home. 'This historic treaty confirms our Aukus commitment for the next half century.' He said people 'not yet born' will benefit from jobs secured through the deal. More than 21,000 people in the UK are expected to be working on the programme at its peak. Foreign Secretary Mr Lammy said the UK-Australia relationship is 'like no other'. He added: 'In our increasingly volatile and dangerous world, our anchoring friendship has real impact in the protection of global peace and prosperity. 'Our new bilateral Aukus treaty is an embodiment of that – safeguarding a free and open Indo-Pacific whilst catalysing growth for both our countries.' The UK's Carrier Strike Group – an international formation of Royal Navy warships, submarines and aircraft – has been taking part in the Talisman Sabre military exercise hosted in Australia. The Australia and US-led military exercise involves more than 35,000 military personnel from 19 countries. Shadow defence secretary James Cartlidge said: 'Aukus was a landmark achievement of the last Conservative government and it's essential that Labour keeps up the momentum, including on industrial collaboration. 'We welcome further progress but this must deliver in practice, both in terms of jobs and strengthened mutual security, at a time of heightened threats.'

Western Telegraph
an hour ago
- Western Telegraph
Lammy and Healey to sign bilateral Aukus deal during trip to Australia
David Lammy and John Healey will meet their counterparts at the annual Australia-UK ministerial meeting, or Aukmin, in Sydney, and then travel on to Melbourne to meet businesses involved in the Aukus submarine programme. They will also visit Darwin as the Carrier Strike Group docks in the Northern Territory. The Aukus partnership between the UK, US and Australia involves building nuclear-powered attack submarines – including Australia acquiring its first such fleet – and co-operating in other areas of defence. It was agreed by the three countries in 2021, but the Trump administration has put it under review, raising fears it could pull out. The deal now being signed by the UK and Australia sets out the bilateral aspects of the partnership and how the two countries will work together to deliver their Aukus submarine programmes over the next half century. Defence Secretary Mr Healey said: 'Aukus is one of Britain's most important defence partnerships, strengthening global security while driving growth at home. 'This historic treaty confirms our Aukus commitment for the next half century.' He said people 'not yet born' will benefit from jobs secured through the deal. Defence Secretary John Healey hailed the importance of the Aukus partnership (James Manning/PA) More than 21,000 people in the UK are expected to be working on the programme at its peak. Foreign Secretary Mr Lammy said the UK-Australia relationship is 'like no other'. He added: 'In our increasingly volatile and dangerous world, our anchoring friendship has real impact in the protection of global peace and prosperity. 'Our new bilateral Aukus treaty is an embodiment of that – safeguarding a free and open Indo-Pacific whilst catalysing growth for both our countries.' The UK's Carrier Strike Group – an international formation of Royal Navy warships, submarines and aircraft – has been taking part in the Talisman Sabre military exercise hosted in Australia. The Australia and US-led military exercise involves more than 35,000 military personnel from 19 countries. Shadow defence secretary James Cartlidge said: 'Aukus was a landmark achievement of the last Conservative government and it's essential that Labour keeps up the momentum, including on industrial collaboration. 'We welcome further progress but this must deliver in practice, both in terms of jobs and strengthened mutual security, at a time of heightened threats.'