Telegraph sale in turmoil after lead bidder linked to China’s politburo | Telegraph Media Group

The sale of the Telegraph Media Group has been thrown into contemporary turmoil after the corporate’s personal newspaper linked its presumed new proprietor to the suspected ringleader of the alleged Chinese language spy ring in Westminster.Wednesday’s version of the Day by day Telegraph revealed a 2024 {photograph} of the financier John Thornton shaking palms with Cai Qi, a senior member of the Chinese language Communist celebration’s ruling politburo, elevating questions as as to whether the British title is being weighed as a way for China to exert overseas affect.Thornton is the chair of RedBird Capital Companions, the non-public fairness agency bidding for management of the media group. Cai has been described as the highest lieutenant of China’s president, Xi Jinping, and has been revealed because the suspect receiving British political intelligence that shaped a part of the collapsed Chinese language spying prosecution.Iain Duncan Smith, the MP and former chief of the Conservative celebration who has been urgent for the federal government to launch a contemporary investigation into the most recent Telegraph takeover, wrote on X: “Let me put it plainly. The assembly between John Thornton and Cai Qi is a crimson flag and a critical one.“It calls for that the tradition secretary, @lisanandy, set off an investigation into RedBird’s bid for the Telegraph beneath our media freedom legal guidelines.“The danger of undue Chinese language affect right here is overwhelming and that’s not simply my view; it’s supported by formal authorized opinion, given Thornton’s deep and well-documented connections with senior figures within the Chinese language Communist celebration.”The event is the most recent piece of intrigue in a long-running Telegraph takeover saga.RedBird Capital – which holds varied investments, together with a stake within the father or mother firm of Liverpool Soccer Membership – is within the strategy of buying Telegraph Media Group from a related organisation, RedBird IMI.RedBird IMI was pressured to place the titles up on the market in spring 2024 after the then Conservative authorities handed a legislation blocking overseas states or related people from proudly owning newspaper property within the UK.Whereas 1 / 4 of RedBird IMI’s funding got here from RedBird Capital, the rest was sourced from Worldwide Media Investments (IMI) – which is managed by Abu Dhabi’s Sheikh Mansour bin Zayed Al Nahyan, the vice-president of the United Arab Emirates and proprietor of Manchester Metropolis FC.The Labour authorities eased the ban on overseas governments proudly owning stakes in UK newspapers this yr by permitting them to carry as much as 15% of titles, which paved the best way for the RedBird Capital provide that may result in IMI retaining a 15% Telegraph stake.The deal, nevertheless, has continued to be considered with suspicion.Within the Home of Lords this month, the Liberal Democrat peer Christopher Fox mentioned: “My Lords, as we all know, a fund with Abu Dhabi cash and possibly Chinese language cash is buying what in international phrases is a small participant, comparatively small, however the Telegraph is critical within the UK.“The very best rationalization for his or her motives that I can provide you with is that they’re shopping for affect.”skip previous e-newsletter promotionSign as much as Enterprise TodayGet set for the working day – we’ll level you to all of the enterprise information and evaluation you want each morningPrivacy Discover: Newsletters could comprise details about charities, on-line adverts, and content material funded by exterior events. Should you should not have an account, we’ll create a visitor account for you on theguardian.com to ship you this text. You may full full registration at any time. For extra details about how we use your information see our Privateness Coverage. We use Google reCaptcha to guard our web site and the Google Privateness Coverage and Phrases of Service apply.after e-newsletter promotionOther media sources urged the Telegraph deal also needs to be seen as a precursor to the potential sale of additional UK media titles within the coming years – and the way robustly the federal government would possibly stand in the best way of rich overseas states who may be eyeing these trophy property.One supply urged there can be extra typical patrons for the Telegraph if RedBird IMI had not set the asking worth at £500m.The Telegraph’s future has been unsure for the reason that Barclay household misplaced its grip on the media group in 2023 in a row about unpaid money owed. Redbird IMI took management of the titles later that yr.The newspapers’ sister journal, the Spectator, was bought final yr to the hedge fund tycoon and backer of GB Information, Sir Paul Marshall, for £100m. Marshall had additionally been within the operating to purchase the Telegraph titles.A spokesperson for RedBird Capital mentioned: “RedBird’s funds are backed by a various group of main international blue-chip institutional buyers and household places of work which don’t embrace any establishments or people from China. There is no such thing as a Chinese language affect in RedBird’s proposed acquisition of the Telegraph.“We’re pleased to work with any regulator or authorities physique that wishes to look into the proposed transaction.”A spokesperson for the Division for Tradition, Media and Sport didn’t remark, citing a “quasi-judicial course of”.