Abu Dhabi’s sovereign wealth fund ADQ is poised to become a minority shareholder in Sotheby’s by acquiring newly issued shares in the US auction house for US$1 billion.
Patrick Drahi, who bought the New York City-based auction house in 2019, will also invest additional capital and remain the majority owner, ADQ says in a statement on August 9.
The specific details were not disclosed. The deal is expected to close before the end of the year.
ADQ says its investment will support Sotheby’s ambitious growth plans and accelerate its expansion into new markets, “including establishing an even more robust presence in the Middle East, as Abu Dhabi continues to strengthen its arts and culture offering domestically”.
According to Hamad Al Hammadi, deputy group chief executive officer of ADQ, the move underscores the wealth fund’s “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”.
“We look forward to creating new collaboration opportunities with Sotheby’s and being a part of its journey,” he says.