Telegraph ownership transfer completed amid imminent £500m sale

Ownership of The Daily Telegraph has transferred to a new holding company as bidders and employees wait for news on the fate of one of Britain’s most influential newspaper publishers.

Sky News has learned that a split process aimed at simplifying the ownership structure of the title and its Sunday sister game has been completed over the past few days.

The decision to restructure the companies came after a consortium led by Dovid Efune, owner of The New York Sun, and National World chief David Montgomery made formal offers for right-wing newspapers.

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In a memo to Telegraph staff on Monday morning, a copy of which was seen by Sky News, Anna Jones, the company’s chief executive, wrote: ‘I can confirm that the investment bank and advisers facilitating the sale of the company have received multiple offers in the next round.

“Traditionally, this is standard procedure for this type of sales process, RedBird IMI and its advisors will now review the merits of each of these offers before approving who will proceed to the next stage.

“This detailed review of the offers may take several weeks as the various legal and regulatory implications for possible transactions are considered.

“In the meantime, to simplify our corporate structure ahead of a further sale, we have transferred the business from Telegraph Media Group Limited to Telegraph Media Group Holdings Limited.”

The bidder was expected to be selected within two weeks

People close to the process expect a preferred bidder to be selected within the next two weeks, allowing Telegraph’s long-term ownership to be resolved after 18 months of uncertainty.

Mr. Efune’s offer created the unusual opportunity for Lord Black, its former owner, to return to the British press group.

Lord Black, who ceased to be a member of the House of Lords earlier this year due to his absence, regularly writes opinion pieces for The New York Sun, a digital-only title.

Sir Paul Marshall, the hedge fund tycoon who paid £100 million for The Spectator magazine this month it did not place a bid for Telegraph by Friday’s deadline, but remains open to acquiring the titles at the right price.

It now seems likely that the newspapers will ask for a price of at least £500m, which would enable RedBird IMI to recoup the £600m it paid last year for the right to convert debt on the assets into outright ownership.

The Telegraph auction is being organized by Raine Group and Robey Warshaw, an adviser to RedBird IMI, an Abu Dhabi-backed entity whose efforts to buy media titles have been thwarted by a change in ownership.

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A separate bid organized by former chancellor Nadhim Zahawi is the subject of bilateral talks with IMI, part of a joint venture with Abu Dhabi-based RedBird.

Sky News recently revealed that Zahawi was sounding out former Prime Minister Boris Johnson about taking a management job at The Daily Telegraph if he managed to buy the papers.

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Lord Saatchi, a former advertising tycoon who offered £350 million, failed to advance to the next round of the auction, and the Belgian publisher Mediahuis also failed to advance.

Lord Rothermere, owner of the Daily Mail, withdrew from the auction earlier this summer over fears it would be blocked due to competition.

IMI is controlled by the Deputy Prime Minister of the United Arab Emirates and ultimate owner of Manchester City Football Club, Sheikh Mansour bin Zayed Al Nahyan.

Lloyds debt, which amounted to over £1.15 billion, was repaid by RedBird IMI on behalf of the family.

RedBird IMI declined to comment.