Former KBG agent Lebedev buys London daily
Russian oligarch and former KGB agent Alexander Lebedev agreed yesterday to buy the Evening Standard for a nominal sum - thought to be £1.
Its publishers, Daily Mail & General Trust (DMGT), said a controlling 75.1 per cent share of London’s weekday newspaper would be passed into the hands of Evening Press, a company formed by Mr Lebedev and his son Evgeny.
DMGT’s Associated Newspapers division is to retain a minority share of 24.9 per cent in the new firm, called Evening Standard Ltd.
DMGT finance director Peter Williams said the Standard was loss-making and had faced declining revenues for a number of years. He said the sum received for the paper was “truly nominal, totally immaterial, doesn’t matter”.
“We got nothing up front,” he added.
But he said DMGT would receive a preferential share of the paper’s profits “when it starts making money”.
Mr Lebedev will become chairman of the Evening Standard board in the deal, which is the first time a Russian oligarch has owned a British newspaper title.
The 49-year-old, who made his fortune mostly through stakes in banking and insurance companies and the Russian airline Aeroflot, is not a newcomer to the industry, having founded the news magazine Korrespondent. He is also the major shareholder, alongside former Soviet leader Mikhail Gorbachev, in the independent Russian newspaper Novaya Gazeta.
DMGT chief executive Martin Morgan said: “Our view is that the Lebedevs have a good record in newspaper ownership and staff on their papers have certainly reported that they do not interfere in editorial.”
He said there were no regulatory approvals required for the deal.
DMGT said the Evening Standard would establish a new editorial committee to “safeguard the principle of editorial independence”.
Mr Lebedev said: “We are strong supporters of a free and independent press and we greatly admire the Evening Standard as an iconic publication with its pedigree of fine journalism and commentary. We are committed to strengthening the newspaper’s competitiveness and look forward to working with Associated, which will continue to be involved as a minority shareholder.”
About 400 employees are affected by the deal but DMGT said it could not give any details about potential job losses.
Mr Morgan said the editor of the Evening Standard, Veronica Wadley, would continue in her role but any decision about a future editor would be “down to the new owners of the paper”.
According to the Guardian, Tatler editor Geordie Greig, who is a shareholder in Evening Press, is set to take over as editor. The London Lite free newspaper was not part of the deal.
Mr Morgan said: “The London Lite will continue and in our view it is a very distinct niche in the London evening market. We will continue to back and invest in the paper.”
The transaction is expected to take place next month following consultation with employees.
Associated will continue to provide printing and distribution services to the Standard for an initial period, with the opportunity to extend these arrangements by agreement. No other DMGT-owned newspaper is involved in the transaction.
