Abu Dhabi's sovereign wealth fund (ADQ) has acquired a minority stake in Sotheby's, an international art auction house.
Art News revealed that the deal, valued at approximately $1 billion, will see ADQ purchasing newly issued shares of Sotheby's.
Patrick Drahi, the current majority owner of Sotheby's, is also expected to contribute additional capital, though specific details of the investment breakdown have not been disclosed.
(Photo : ISAAC LAWRENCE/AFP via Getty Images)
This investment marks a strategic expansion for ADQ, which was established in 2018 and rebranded in 2020. The fund, which has traditionally focused on sectors such as healthcare, energy, and food, is now diversifying its portfolio by venturing into the arts and culture sector.
In a statement, ADQ deputy group CEO Hamad Al Hammadi said, "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."
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Sotheby's Art Auction's Expansion
Reuters reports that the $1 billion infusion is expected to strengthen Sotheby's financial position and support its expansion plans.
The auction house has announced new retail locations, including a Maison in central Hong Kong and a new building on Rue de Faubourg in Paris, which is set to open in October.
Additionally, Sotheby's is developing the iconic Breuer Building in New York, scheduled for completion in 2025. These projects, along with the newly acquired capital, are intended to enable Sotheby's to boost its offerings in the art and luxury markets.
Charles Stewart, CEO of Sotheby's, stated, "We are committed to excellence in the art and luxury markets and to continuing our tradition of innovation to better serve our clients around the world."
The transaction is expected to close by the end of the year, pending regulatory approvals.
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