UAE delegation visited No 10 before law change that paves way for stake in Telegraph

A delegation from the United Arab Emirates met Downing Street officials weeks earlier ministers announced a instrumentality alteration that allows the authorities to instrumentality a 15% involvement successful the Telegraph titles, the Guardian understands.

Ministers disclosed the headdress this week arsenic portion of a long-awaited clarification connected the rules astir authorities ownership of British newspapers. It is higher than the 5-10% ceiling envisaged by the erstwhile Conservative government.

It has present emerged that a fewer weeks earlier successful March, a elder Emirati delegation held a gathering successful No 10 with officials including Varun Chandra, the concern advisor to Keir Starmer. While details of the gathering are unknown, it is understood the delegation sought clarity connected the authorities ownership law. Downing Street and IMI declined to comment. The UAE authorities has been approached for comment.

The determination efficaciously paves the mode for the United Arab Emirates to instrumentality a 15% involvement successful the Telegraph, astir apt done the IMI concern conveyance backed by Abu Dhabi.

The instrumentality alteration ends a lengthy consultation involving intensive lobbying by paper owners. It is besides a motion of Downing Street’s hopeless hunt for economical maturation and determination to marque the UK an charismatic spot for overseas investment. However, the determination has travel nether onslaught from MPs and manufacture figures for opening up the British media to much authorities ownership.

Fraser Nelson, a erstwhile exertion of the Spectator and existent Times columnist, described the determination arsenic an “indefensible sellout, successful defiance of parliament’s ballot to support property freedom”. Andrew Neil, a erstwhile Sunday Times editor, said Lisa Nandy should suffer her occupation implicit the decision.

The Liberal Democrats are besides opposing the caller instrumentality and volition motorboat an effort to artifact it successful the House of Lords with a alleged “fatal motion”. The maneuver is apt to divided the Conservative party. Max Wilkinson, the Lib Dem civilization spokesperson, said the program enactment editorial independency “at risk”.

“It’s a program we wholeheartedly reject,” helium said. “No 10 indispensable travel cleanable connected their gathering with UAE delegates, and clarify whether they were lobbied to rotation backmost connected what parliament agreed past year.”

Should the instrumentality alteration spell done arsenic expected, it marks the opening of the extremity for the Telegraph’s ownership saga, which has rumbled connected for 2 years. The Telegraph titles were primitively bought by RedBird IMI, a UAE-backed task that was blocked from taking power by the past government.

Under the caller law, RedBird Capital, a US backstage equity firm, is expected to bargain the Telegraph, with 15% of the wealth coming from IMI, which is linked to Sheikh Mansour bin Zayed Al Nahyan, the Emirati royal.

RedBird is besides said to beryllium talking to different imaginable British investors successful the deal. A mooted effort to bargain the Telegraph by the Chelsea FC proprietor and seat Todd Boehly and the Fleet Street seasoned David Montgomery has not materialised.

While determination has been important involvement successful the Telegraph from different groups, the asking terms of £500m has proved excessively precocious for most. In 2023, Lord Rothermere’s Daily Mail and General Trust had been progressive successful talks with Qatari investors implicit a imaginable bid, but subsequently pulled out. However, the adjacent inactive has contacts successful the region.

This week, Rothermere was among the high-profile media figures spotted successful Doha gathering president Trump and the Qatari emir, Tamim bin Hamad Al Thani. His group’s events concern is understood to beryllium salient successful the region. Others successful the enactment included Piers Morgan, who present owns and runs his ain YouTube channel, and Patrick Soon-Shiong, the aesculapian capitalist and Los Angeles Times owner.

Industry sources said that the UAE delegation was not the lone radical to person been seeking clarity connected the laws astir media ownership by overseas states. Other media groups were besides said to person concerns implicit a prohibition connected authorities ownership, oregon a precise debased ceiling connected specified ownership.

It is simply a motion of the fiscal strains the media satellite is under, arsenic people income diminution and the integer gyration has brought immense change, with antecedently antithetic kinds of media groups present competing with each different online. The improvement of AI is besides seen arsenic an accidental arsenic good arsenic a menace by media executives, and the Gulf states person important wealth to invest.