DUBAI (Reuters) – Abu Dhabi wealth fund ADQ and Sotheby’s majority shareholder Patrick Drahi will invest $1 billion in the auction house as part of a deal under which ADQ will acquire a minority stake in the company, the fund and Sotheby’s said on Friday.
French-Israeli billionaire Drahi, founder of telecommunications group Altice, is grappling with rising borrowing costs due to the $60 billion in debt that allowed him to build a media and telecommunications empire in an era of low interest rates.
Under the agreement with ADQ, Drahi will retain a majority stake in Sotheby’s, one of the world’s largest art and jewelry brokers.
ADQ, Abu Dhabi’s third-largest sovereign wealth fund, said Drahi would invest additional capital to bring the total investment by both parties to about $1 billion.
“Our investment underlines our deep belief in the enduring value of the Sotheby’s brand, its market-leading platform and the ability of its management team to execute its growth plan,” said Hamad Al Hammadi, Deputy Group CEO of ADQ.
ADQ was founded in 2018 and is engaged in a wide range of activities, 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 clients around the world,” said Charles F. Stewart, CEO of Sotheby’s.
