Sign in
ADQ closes Sotheby’s acquisition: Abu Dhabi’s sovereign wealth fund ADQ acquired a minority stake in Sotheby’s, the UK-based auction house, as part of a c.USD 1 bn investment made jointly with telecom b’naire Patrick Drahi, Bloomberg reports. Drahi retained a majority stake in the company. The exact financial terms of the transaction were not disclosed.
ADQ will get seats on Sotheby’s board: ADQ will hold three seats on Sotheby’s board, which will consist of eight directors plus the CEO. Sotheby’s CEO Charles Stewart confirmed that ADQ’s representation approximately reflects its proportional investment in the company, without providing further details.
Background: ADQ first revealed its plan to snag a stake in Sotheby’s last August, stating that it will acquire newly issued Sotheby’s shares, with Drahi — who bought Sotheby’s for USD 3.7 bn in 2019 — committing capital to retain his majority stake.
Sotheby’s has faced financial challenges in recent years, with parent company Bidfair holding almost USD 1.7 bn in long-term debt. The company’s sales declined to USD 3.2 bn in the first half of 2024, down 20% y-o-y, according to a company spokesperson. This financial pressure led S&P Global Ratings to downgrade Sotheby’s credit rating to B-, citing declining profitability and elevated leverage.
The capital injection will repay Sotheby’s debt + fuel its expansion: The auction house will use approximately USD 800 mn of the funds to reduce its debt, with the rest to go towards supporting Sotheby’s expansion plans. The expansion plans include growing its real estate portfolio in the US, entering new markets, and developing new revenue streams, Artnews reports. Part of this includes finalizing the purchase of the Breuer building in New York, initially announced in June 2023 for USD 100 mn, where Sotheby’s plans to establish its New York headquarters. Stewart stated that the auction house expects to finalize the acquisition “imminently,” in a statement.
PLUS- The auction house could expand its presence in the Middle East, particularly in Abu Dhabi, it said in August.
OTHER M&A NEWS-
A subsidiary of Modon Holding’s Adnec Group, Excel London, completed the acquisition of London’s BDCG Holdings, which owns the Business Design Center venue in north London, according to an ADX disclosure (pdf). The transaction’s value was not disclosed. The venue — which spans 4.5 acres — hosts more than 130 events and 900k guests annually.
REMEMBER- Adnec is expanding across multiple sectors, acquiring the Abu Dhabi-based Royal Catering last week to merge the firm into its existing catering business Capital Catering.
About Excel: The company operates as an events hub in the meetings, incentives, conferences, and exhibitions (MICE) industry. Acquired by Adnec in 2008, Excel currently operates 125k sqm of MICE space, making it the largest integrated conference and exhibition venue in Europe.
