A consortium backed by Abu Dhabi, comprising International Media Investments and the American firm RedBird Capital, has reportedly agreed to refinance the Barclay family's debts with Lloyds Banking Group PLC (LSE:LLOY), allowing it to regain control of the Daily Telegraph and its sister titles.
This development, as reported by The Times, comes after Lloyds Bank took control of the family's media assets in June.
The deal involves a £600 million loan secured against the Telegraph and The Spectator, and another similar-sized loan against the Barclay family’s other commercial businesses. RedBird IMI intends to convert the loan against the media titles into equity and has committed to maintaining its editorial independence.
Jeff Zucker, former president of CNN, is set to lead the media group under RedBird Capital's management, with International Media Investments as a passive investor. The transaction is subject to regulatory review, and discussions are expected among MPs on the Commons culture committee.
Lloyds Bank is conducting due diligence on the Barclay family's proposal for the Telegraph media assets while continuing to consider other offers in an auction process led by Goldman Sachs (NYSE:GS). The bank had sought court approval to liquidate a holding company in the Barclay's business empire, a process now paused for reviewing the family's offer.