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gerard van weyenbergh

Abu Dhabi funds ADQ injected $1billion in Sotheby's!

Abu Dhabi-based sovereign wealth fund ADQ is set to take a stake in Sotheby's as part of a $1bn capital injection alongside existing owner Patrick Drahi. The deal will be used to reduce leverage and support the company's growth and innovation plans, with Drahi remaining Sotheby's majority owner. The acquisition of Sotheby's in 2019 was valued at $3.7bn, including debt. S&P Global Ratings cut the auction house's credit rating to B minus in June, citing pressured profitability and continued Ebitda decline.

Sotheby's parent company Bidfair had $3.5bn in long-term debt at the end of last year. The deal with ADQ is expected to close before the end of the year. The fund's involvement is a reflection of how many rich buyers of artwork and collectors' items increasingly hail from the oil-rich Gulf states. The Sotheby's stake falls outside ADQ's priority sectors, but a person close to the fund said it could lead to a Sotheby's opening in Abu Dhabi, which has invested heavily in bringing art and culture to the emirate.

seen in France www.vwart.com

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