Nadhim Zahawi, who stepped down from Parliament in May, is reportedly seeking billionaire investors to support a £600 million bid for a major newspaper, its
Sunday edition, and The Spectator, according to Sky News.
The former Cabinet minister, who has held roles as business secretary, education secretary, and vaccines minister during the COVID-19 pandemic, sees significant potential for the Telegraph to increase its profitability by expanding into the US market.
Zahawi, with his extensive business connections in the Middle East, has not yet made a formal offer but is reportedly confident in securing the necessary funds for a competitive bid.
City sources indicate that the Reuben family, known for their vast property assets and stake in Newcastle United Football Club, have been approached as potential backers.
The initial bid deadline saw several provisional offers for the Telegraph titles and The Spectator. The takeover discussions follow the Barclay family's forced sale of the media group last year to repay debts to Lloyds Bank. The Daily Mail publisher has ruled out a bid, leaving the future ownership uncertain.
Zahawi previously played a crucial role in the sale of Telegraph Media Group to the investment fund RedBird IMI. He is now reportedly negotiating directly with International Media Investments (IMI), the majority stakeholder in RedBird IMI.
RedBird IMI had acquired the business for roughly £600 million and assumed £600 million in debt in December. However, by April, the Abu Dhabi-backed fund announced plans to sell the Telegraph, citing government intervention after the Conservative government decided to prevent foreign governments from owning British newspapers.
Other potential bidders include National World, a London-listed media group, and former advertising executive Lord Saatchi. Photo by UK Government, Wikimedia commons.