Nadhim Zahawi, the former Conservative chancellor, is preparing a £600 million bid to acquire the Telegraph Media Group, which includes The Daily Telegraph, The Sunday Telegraph, and The Spectator magazine.

According to Sky News, Zahawi is currently securing support from potential backers, including the Reuben family, noted stakeholders in Newcastle United FC. Zahawi’s bid comes as part of an ongoing auction process after the previous sale attempt was halted by government concerns over foreign state ownership.

The Telegraph newspapers, historically controlled by the Barclay family for two decades, entered receivership in June last year due to £1.2 billion in overdue loans. Zahawi, 57, has close ties with the Barclays and acted as an intermediary between them and the UAE in an effort to regain control of the titles. Recently, Zahawi was appointed chairman of Very Group, a retail company owned by the Barclays.

Initially, the auction was paused after RedBird IMI, an investment group backed by Abu Dhabi and led by former CNN boss Jeff Zucker, repaid the Lloyds loan to seize control of the papers. However, the UK government blocked this acquisition, citing concerns about foreign state ownership, thus reopening the sale process.

The first-round bidding deadline for the Telegraph group expired last Friday, with RedBird IMI now reassessing its strategy alongside advisers from boutique banks Robey Warshaw and Raine. The sale process is expected to unfold over the coming weeks, with multiple bidding rounds anticipated before a final decision is made.

Other interested parties include private equity firms and international news organisations, such as Belgium’s Mediahuis. RedBird Capital, an American private equity group, may also proceed with an offer, potentially buying out RedBird IMI’s stake, which is a joint venture with International Media Investments from Abu Dhabi.

Zahawi, who arrived in Britain as a child refugee from Iraq, co-founded the polling company YouGov and has extensive business connections in the Middle East. One of Britain’s wealthiest MPs, Zahawi held lucrative consulting roles with oil companies and frequently travelled to the Gulf states. He stood down as an MP at the last general election.

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Nadhim Zahawi plans £600 million bid for Telegraph titles