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Abu Dhabi-backed RedBird IMI is formally withdrawing its bid to acquire British papers, the Telegraph and Spectator, following months of opposition from the UK government, Bloomberg reports. The company kicked off the auction yesterday, with several buyers already signaling interest, the business information service said, citing a statement.
Spectator Editor Fraser Nelson wants the sale to wrap up fast: Nelson, a critic of the RedBird takeover, said in an X post that the publications being “in limbo” has a “real cost,” and called for the sale to wrap in the summer.
Their loss? RedBird IMI, a JV between UAE Deputy Prime Minister Sheikh Mansour bin Zayed Al Nahyan’s International Media Investments and RedBird Capital Partners, said their ownership would have been advantageous for the newspapers and their audience. “Our ownership would have seen the strongest editorial protections ever put forward for a UK newspaper, along with much-needed investment,” it said in the statement.
Background: The Sunak government pledged to block “foreign states and their officials” from purchasing UK print news media, with the details still being drawn up. The JV has tapped Raine Group to oversee the sale process and was said to be considering various options, including converting its call option into shares with the British Department for Culture, Media, and Sport. Selling the Spectator independently could fetch over GBP 100 mn.
Still some hope left? If the Labour Party — which is currently leading in opinion polls — emerges as victors in the upcoming general election in the UK, a new government will have to decide whether to continue taking a firm stance against involvement from the UAE.
OTHER M&A NEWS-
Investcorp expands its tech and financial services portfolio in India: Mubadala-backed global alternative investment firm Investcorp inked an agreement to acquire India’s National Stock Exchange digital technology business, NSEIT, for INR 10 bn (USD 119.8 mn), it said in a statement. The Indian company offers digital transformation and cybersecurity services globally, focusing on capital markets, ins., and banking in India, North America, and the Middle East. The acquisition excludes NSEIT’s digital examinations segment.
ADVISORS- Avendus Capital acted as financial advisor to NSE and NSEIT, while Ernst & Young served as the financial and tax advisor to Investcorp with Anagram Partners acting as the legal counsel.
