Britain’s blocking of Telegraph bid ‘hit relations with UAE’

THE decision to block a Uae-backed takeover of The Telegraph has damaged relations with the Gulf state, a former Cabinet minister has warned.

Sir Brandon Lewis, an ex-northern Ireland secretary, said that it “would be logical” if the handling of Redbird IMI’S bid had contributed to a diplomatic breakdown between the UK and UAE that puts billions of investment at risk.

At least four ministerial engagements have been cancelled in recent weeks, with reports suggesting that the Emiratis had taken offence at Britain’s lack of support in a UN row over its interventions in South Sudan. However, Sir Brandon, who is stepping down as an MP at the general election, highlighted the criticisms of the UAE sparked by Redbird IMI’S bid, which relied on the Manchester City owner Sheikh Mansour bin Zayed al-nahyan for three quarters of its £600m funding.

The takeover was killed off last month by the announcement of new laws banning state ownership of UK newspapers, which was prompted by a cross-party outcry in the House of Lords over the threat to press freedom.

Writing in The Telegraph, Sir Brandon said: “I know that MPS and ministers who opposed the deal were at pains to say the UK valued the partnership with the UAE and would still be keen for inward investment. But I can assure them that is not how it is perceived by the Emiratis, and it will take more than warm words to put this right.

“Reports of meetings with UK ministers being cancelled are cause for serious concern, and it would be logical that the handling of The Telegraph sale is a factor in this apparent breakdown of relations.”

Sir Brandon is a close friend and political ally of Nadhim Zahawi, a former education secretary and briefly chancellor, who acted as a broker in a deal for The Telegraph between its owners, the Barclay family, and the UAE.

Mr Zahawi, who is also stepping down as an MP, hoped to become chairman of The Telegraph under Redbird IMI ownership but has instead been appointed chairman of the Barclay family online retailer Very.

It is now in direct debt to Sheikh Mansour having been offered as security in another part of the complex deal, which was structured to repay the family’s £1.2bn overdue debt to Lloyds.

The Telegraph and The Spectator magazine, which is owned by the same parent company, are expected to be sold on by Redbird IMI in the coming weeks.

Interested parties include GB News co-owner Sir Paul Marshall and the

publisher Lord Rothermere.