DUBAI (Reuters) - Abu Dhabi wealth fund ADQ is to acquire a minority stake in Sotheby's in a $1 billion deal with the auction house's majority owner Patrick Drahi, the fund said on Friday. Under the agreement, ADQ, Abu Dhabi's third biggest sovereign wealth fund, said it would support Sothbey's "growth and innovation plans". Drahi, a Franco-Israeli billionaire, would invest additional capital alongside the fund, maintaining his majority ownership.
The total investment in Sotheby's - one of the world's largest brokers of fine and decorative arts and jewellery - was about $1 billion, it said in a statement. "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 Hamad Al Hammadi, deputy group CEO of ADQ. ADQ was established in 2018 and holds a broad portfolio including energy and utilities, food and agriculture, healthcare and others.
Drahi has been struggling with a $60 billion debt wall that allowed him to build his media and telecoms empire in an era of low interest rates. (Reporting by Nayera Abdallah and Shakeel Ahmed, Writing Amina Ismail; Editing by Nadine Awadalla and Emelia Sithole-Matarise).
