Culture Secretary Lucy Fraser has said she “intends” to launch a second investigation into the proposed sale of Telegraph Media Group to Abu Dhabi-backed Redbird IMI.
The move was prompted by Redbird IMI's changes to the corporate structure of TMG's potential acquirer.
Redbird IMI Media Joint Venture LLC, a Delaware limited liability company, was the sole shareholder of RB Investco Ltd with the right to acquire The Telegraph.
But on Tuesday, the structure changed, with all shares now held by a new UK limited partnership, RB IMI AIV Limited Partnership, whose subsidiary is RB Investco Limited.
International Media Investments (IMI), privately owned by UAE Vice President Sheikh Mansour, remains the majority shareholder in both companies.
“Therefore, we remain concerned about the potential impact,” Fraser said. [IMI] Regarding Tokyo, there is a possibility that it will affect the free expression of opinions and the accurate representation of news in newspapers. ”
Content from partners
In a letter to Redbird IMI, she was told that “the new corporate structure makes it clear that IMI has no management or operational rights or responsibilities whatsoever with respect to the partnership or TMG companies” and that “IMI “Investment is of a passive nature.” It is set out in the Limited Partnership Act and the Limited Partnership Agreement. ”
“However, we also note that there are certain reservations that will still require IMI's consent under the Partnership Agreement. Your submission should also include the identity and identity of the ultimate economic shareholders of RB Investco Limited. We also note that it is stated that the nature of the economic benefit remains unchanged.”
Fraser criticized the timing of the changes, noting that “information about this new corporate structure was being shared and implemented very late in the process. I do not believe this will help the process fully and properly function.” not.
“I hope that the relevant authorities will have access to all relevant information in a timely manner and in sufficient detail so that they, and by extension me as Secretary of State, can make decisions. Masu.”
Affected parties must respond to the letter of intent by 9am tomorrow (Thursday 25 January). If a new Public Interest Intervention Notice (PIIN) is issued, Ofcom and the Competition and Markets Authority will be asked to assess the deal again.
The previous PIIN, issued on 30 November, remains in force and also directed Ofcom and the CMA to investigate the impact of the agreement on freedom of expression and market competition.
[Read more: Explained – Why Telegraph sale has been paused after RedBird IMI deal with Barclays]
Email [email protected] To point out mistakes, provide story tips, or send letters for publication on our “Letters Page” blog