DMGT Lines Up NatWest to Help Fund £500m Telegraph Bid
DMGT is in exclusive talks with NatWest Group to secure financing for the £500 million purchase price to acquire Telegraph Media Group and end the Telegraph's current ownership hiatus. Discussions are ongoing, but the exact amount to be financed by NatWest and the equity stake DMGT will hold have not been disclosed.
NatWest is expected to be a principal lender in the deal, which aims to reduce reliance on overseas financing for Lord Rothermere's bid. The proposal is currently under review, and the culture secretary Lisa Nandy is set to receive details of the deal by early next week. Competition and regulatory inquiries by the Competition and Markets Authority (CMA) and Ofcom are anticipated.
The move follows the collapse of a bid by the RedBird Capital Partners consortium, which faced opposition within the Telegraph newsroom. Initially, under the RedBird-led bid, DMGT planned to acquire a minority stake of just under 10% in the Telegraph titles, but the new approach centers on DMGT assuming control of Telegraph Media Group.
If successful, the Telegraph titles would join DMGT's portfolio alongside the Metro, The i Paper, and New Scientist. DMGT had signalled in November its intention to invest substantially in the Telegraph Media Group to accelerate international expansion, focusing particularly on the USA, where the Daily Mail already has a presence.
