DUBAI (Reuters) – Abu Dhabi wealth fund ADQ and Sotheby’s majority shareholder Patrick Drahi will invest $1 billion in the auction house in a deal that will see ADQ acquire a minority stake in the company, the fund and Sotheby’s said on Friday.
French-Israeli billionaire Drahi, who founded the telecoms group Altice, is struggling with rising debt levels due to a $60 billion debt pile that allowed him to build his media-to-telecommunications empire in an era of low interest rates.
Under the deal with ADQ, Drahi will retain a majority stake in Sotheby’s, one of the world’s largest brokers of fine and decorative arts and jewelry.
ADQ, Abu Dhabi’s third largest sovereign wealth fund, said Drahi will invest additional capital to bring the total investment from both parties to around $1 billion.
“Our investment underlines our firm belief in the enduring value of the Sotheby’s brand, market-leading platform and management’s ability to execute their growth agenda,” said Hamad Al Hammadi, Deputy CEO of ADQ Group.
Founded in 2018, ADQ has a broad portfolio including energy and utilities, food and agriculture, healthcare and others.
“The additional capital and investment expertise will enable us to accelerate our strategic initiatives, expand our commitment to excellence in the art and luxury markets and continue to innovate to better serve our customers around the world,” said Charles F. Stewart, CEO of Sotheby’s.
