Sullivan & Cromwell has advised Abu Dhabi’s sovereign wealth fund ADQ on its acquisition of an undisclosed minority stake in Sotheby’s for about US$1 billion.
ADQ will acquire newly issued shares of Sotheby’s in a move that aims to strengthen the luxury auction house’s presence in the Middle East and support its expansion into new markets.
Patrick Drahi, who acquired Sotheby’s in 2019, will also invest additional capital alongside ADQ and remain the majority owner.
The Sullivan & Cromwell team included partners from the firm’s US and UK offices. Los Angeles partners Alison S. Ressler and Rita-Anne O’Neill advised on the transaction, alongside London partners Ben Perry and Juan Rodriguez, and New York partners Davis J. Wang, Ari B. Blaut, Marion C. Leydier, Eric J. Kadel Jr., and RuiHui (Rachel) Yu.
Hughes Hubbard & Reed, Mayer Brown, and Slaughter and May advised Sotheby’s.
Hughes Hubbard & Reed partners Michael Traube and Javad Husain led a team advising on Sotheby’s definitive agreement, with primary assistance from partners Andy Braiterman, Ken Lefkowitz, and Charlie Wachsstock.
Mayer Brown, led by partners Jason Bazar and Lucas Giardelli in New York, advised Sotheby’s on tax and structuring.
Slaughter and May partners Richard Smith, Paul Mudie, Bertrand Louveaux, Nick Bonsall, and Dominic Robertson advised on English law and coordinated global competition matters.
Abu Dhabi continues to strengthen its arts and culture offering domestically.
ADQ deputy group chief executive officer Hamad Al Hammadi said in a statement: “ADQ remains committed to exploring compelling investment opportunities that drive value for Abu Dhabi. 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.”
The agreement is subject to customary approvals and expected to close before the end of the year.
