ADQ, an investment holding company in the Emirate of Abu Dhabi, and Sotheby’s, the world’s leading fine art and luxury auction house, today signed a definitive agreement under which ADQ will acquire a minority stake in the house.
Under the terms of the agreement, ADQ will acquire Sotheby’s recently issued shares to help reduce its debt and support the company’s growth, expansion and innovation plans. French businessman Patrick Drahi, who acquired Sotheby’s in 2019, will inject additional capital alongside ADQ, where he will remain a majority owner. The total investment is approximately $1 billion, according to a statement published on ADQ’s website.
The agreement is subject to customary approvals and is expected to be completed before the end of this year, according to the statement.
ADQ said its investment in Sotheby’s reflects its drive to capitalize on value-creating investment opportunities that contribute to Abu Dhabi’s economic diversification policy. The investment will also support Sotheby’s plans to grow and expand into new markets, including strengthening its business in the Middle East.
Hamad Abdulla Al Hammadi, Deputy Group CEO of ADQ, said: “We are pleased to partner with the world-renowned Sotheby’s, which has a long and successful track record. We are committed to exploring investment opportunities that will add value to the Emirate of Abu Dhabi. This deal reflects our full confidence in the Sotheby’s brand, its global market leadership, and the ability of its management team to execute its growth plans. We look forward to strengthening our cooperation with them and contributing to their distinguished journey.”
Charles Stewart, Chief Executive Officer of Sotheby’s, said: “We welcome ADQ as a shareholder in our company and are confident that this investment will further enhance our achievements and support our plans for future growth. ADQ’s additional capital and investment expertise will accelerate our strategic plans and reinforce our commitment to excellence in the art and luxury market, as well as support our efforts to provide innovative solutions to our clients around the world.”
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