DUBAI (Reuters) -Abu Dhabi wealth fund ADQ and Sotheby's majority owner Patrick Drahi will invest $1 billion in the auction house in a deal that will see ADQ acquire a minority stake in the company, the fund and Sotheby's said on Friday.
French-Israeli billionaire Drahi, who founded telecoms group Altice, has been struggling with soaring debt costs because of a $60 billion debt pile that allowed him to build his media-to-telecoms empire in an era of low interest rates.
Under the deal with ADQ, Drahi will keep majority ownership of Sotheby's, one of the world's largest brokers of fine and decorative arts and jewellery.
ADQ, Abu Dhabi's third biggest sovereign wealth fund, said Drahi will invest additional capital to bring the total investment by both parties to around $1 billion.
"Our investment underscores 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," said Hamad Al Hammadi, ADQ deputy group CEO.
ADQ was established in 2018 and holds a broad portfolio 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.