Barclay family set to lose control of Very Group as Redbird IMI looks to kick off sale
The billionaire Barclay family is rumoured to be on the very of losing control of Very Group after their Gulf and American-based backers began to plot a sale of the business.
The Abu Dhabi investment firm behind the family is understood to be exploring a sale of Very as it looks to unwind a £1.2bn refinancing of the family’s debts, a report in The Times said.
A sale of the business would form the second stage of a plan by Sheikh Mansour bin Zayed bin Sultan al-Nahyan, vice-president of the United Arab Emirates, to recover lending secured against the family.
Sheikh Mansour teamed up with Redbird Capital – an American private equity firm – to refinance the Barcalys’ debt to Lloyds Banking Group and had hoped to convert the debt to equity to secure ownership of the Telegraph and associated media assets. The two parties funded the deal through a joint venture Redbird IMI.
A source close to the negotiations told The Times separate sales of Very and the Telegraph were planned because media operators were unlikely to express an interest in Very and “different bidders will offer best value for the individual parts”.
They said bidders “could buy the Telegraph and not the Very Group”.
Back in February, Very Group secured a £125m investment and revealed a half-year loss.
The Barclays sold the Ritz Hotel for £800m four years ago and have also lost control of other businesses that used to form part of their empire, including delivery group Yodel.
It was reported by The Times that the family is also trying to sell the Lady Beatrice, a 197ft yacht named after Beatrice Cecelia Taylor, the late mother of the Barclay twins.
City A.M. has contacted Very Group for a comment.