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Abu Dhabi-backed Redbird to hold the Barclays’ UK assets as collateral: Abu Dhabi’s International Media Investments-backed RedBird IMI could gain control over the Barclay family’s businesses in the UK after the family pledged all of its UK assets as security to the GBP 1.2 bn loans provided by RedBird IMI, the Financial Times reports, citing filings from the UK’s Companies House register.
The assets: Six of the Barclays’ companies have registered new transaction fees tied to the RedBird IMI loan, including registered charges by digital retailer The Very Group, the salmon-colored paper said. Securing these assets as collateral gives Redbird IMI the right to take control of the assets in case of default.
Background: The Barclays entered into a debt-for-equity swap with RedBird IMI 2023 to repay the GBP 1.2 bn in debt it owes to Lloyds Bank in order to regain control over the Telegraph. The Abu Dhabi-backed vehicle — a JV between RedBird Capital Partners and UAE-based International Media Investments — agreed in December to repay the Barclays’ debt in full under a GBP 600 mn convertible loan that will see RedBird IMI take over The Telegraph and its sister publication, The Spectator, and another GBP 600 mn loan secured against other assets owned by the Barclays.
ICYMI- The transaction has been contested in the UK, with 73 British MPs including a cabinet minister and frontbenchers from both political parties calling to halt the takeover, followed by UK Culture Secretary Lucy Frazer issuing an order to prevent any further changes to the ownership of The Telegraph until the UK government completes its investigation into the takeover of the newspaper.
The Barclay family is struggling to escape insolvency: The news comes against the backdrop of a Barclay family member selling over 100 real estate properties on the island of Sark in a bid to raise liquidity as he “faces a petition from a leading private bank to declare him personally bankrupt,” the Telegraph reported in January. The Barclays have also been reportedly looking to sell their parcel delivery firm, Yodel.
ICYMI-Abu Dhabi-backed RedBird IMI also finalized an agreement to acquire UK-based media group All3Media from Warner Bros and Liberty for GBP 1.15 bn (AED 5.33 bn), according to a statement last Friday. The purchase of All3Media is the group’s fifth and largest acquisition to date. RedBird IMI head and former CNN Global President Jeff Zucker will chair All3Media’s board, with group CEO Jane Turton and COO Sara Geater retaining their roles.
IN OTHER M&A NEWS-
nybl + Saudi Basserah set up AI JV: Dubai-based AI startup nybl finalized an agreement to merge and form a JV with Saudi data automation firm and Nomd subsidiary Basserah, integrating the latter’s products, systems, and intellectual property under the nybl brand, according to a press release. The merger will help the companies expand regionally and globally by establishing a “vertically integrated data-AI pipeline,” the press release reads.
About nybl: Launched in 2019, nybl is a machine-learning platform that aims to democratize access to AI technology by offering services to facilitate the development of codeless machine learning models and applications. The platform provides real-time data failure prediction, prescription, prevention, and optimization.
What they said: “nybl and Basserah have demonstrated a long-term commitment to increasing local value and contributing to the economic and technological development of Saudi Arabia and the UAE. Our goal is to establish ourselves as the technological foundation for the world’s leading corporations, and this merger has significantly expedited our progress toward achieving this objective,” nybl co-founder and COO Mohammed Shono said.
