Arab News, Mon, Aug 12, 2024 | Safar 8, 1446
Abu Dhabi’s ADQ to acquire minority stake in auction house Sotheby’s
Emirates:
Abu Dhabi’s wealth fund ADQ is set to acquire a minority stake in Sotheby’s,
reflecting its commitment to enhancing its global presence in the arts and
luxury sectors.
According to a press release, the Abu Dhabi-based
investment firm has signed a definitive agreement with Sotheby’s, a global
leader in fine art and luxury markets.
Patrick Drahi, who acquired Sotheby’s in 2019,
will invest additional capital alongside ADQ and remain the auction house’s
majority owner. The total investment amounts to approximately $1 billion.
ADQ’s investment into Sotheby’s underscores its
strategic goal of pursuing value-accretive investment opportunities that
contribute to Abu Dhabi’s economic diversification.
As a strategic partner of Abu Dhabi’s government,
ADQ supports the Emirate’s transformation into a competitive, knowledge-based
economy.
This move will support Sotheby’s in executing its
ambitious growth agenda and expanding into new markets, including reinforcing
its presence in the Middle East as Abu Dhabi continues to develop its arts and
culture sector.
Hamad Al-Hammadi, deputy group chief executive
officer of ADQ, said: “ADQ remains committed to exploring compelling investment
opportunities that drive value for Abu Dhabi. Our investment underscores our
firm belief in the enduring value of Sotheby’s brand, market leading platform
and the ability of its management to execute on their growth agenda.”
He added: “We look forward to creating new
collaboration opportunities with Sotheby’s and being a part of its journey.”
Under the agreement, ADQ will acquire newly issued
shares of Sotheby’s to help reduce the company’s leverage and support its growth
and innovation plans.
Commenting on the deal, Charles F. Stewart, CEO at
Sotheby’s, said: “We are delighted to welcome ADQ as a shareholder to Sotheby’s.
We embrace their long-term vision of our business, and this investment is a
testament to what we have achieved so far as well as our significant potential
for future growth. The additional capital and investment expertise will enable
us to accelerate our strategic initiatives.”
The investment agreement is pending customary
approvals and is expected to close by the end of the year.
Founded in 1744, Sotheby’s facilitates access to
and ownership of art and luxury items through auctions, private sales,
e-commerce, and retail channels.