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MPs call for inquiry into how RedBird Capital is funding £500m Telegraph deal
- A group of MPs and peers have called for an inquiry into the funding of a £500m Telegraph takeover by US private equity firm RedBird Capital.
- Concerns over possible Chinese state influence were raised due to the chair of RedBird Capital's ties to China.
- There were calls for transparency regarding the funding sources of the acquisition.
- RedBird Capital denied involvement of Chinese state funds in the deal.
- Several Conservative, Labour, Liberal Democrat, and SNP MPs signed the letter urging a transparent investigation.
- The MPs called for a review of the acquisition's national security implications and the suitability of RedBird Capital's chair.
- No regulatory proposal has been submitted to the Department for Culture, Media and Sport (DCMS) yet.
- The deal is fully funded by RedBird Capital, with no contingency on additional investors.
- RedBird Capital will become the sole controlling owner of the Telegraph titles.
- RedBird Capital is purchasing the titles from RedBird IMI, backed by Sheikh Mansour bin Zayed Al Nahyan.
- Concerns were raised over links to Abu Dhabi and Sheikh Mansour's ownership.
- The UK government introduced a law last year to block foreign states from owning British newspaper assets, affecting the initial takeover.
- Under the new legislation, foreign states can own stakes of up to 15% in British newspapers.
- The proposed acquisition would lead IMI to hold a minority stake in compliance with the law.
- The MPs and peers criticized that the sale could undermine the legislation if approved without full disclosure of investors.
- The DCMS has been contacted for a response to the situation.
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