Sold! Sotheby’s shareholders approve $3.7bn sale of historic auction house
Sotheby’s shareholders have approved the $3.7bn (£3bn) sale of the auction house to French-Israeli billionaire art collector Patrick Drahi.
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The sale today garnered the approval of over 90 per cent of shareholders in Sotheby’s, the New York-headquartered auctioneer which was founded in London over 250 years ago.
The approval comes three months after Sotheby’s signed a merger agreement with Bidfair USA, an entity owned by Drahi, who made his money in media and telecoms.
Shareholders will receive $57 per share, which is 61 per cent above the company’s share price in June. Yet the share price had fallen 40 per cent in the year to June over fears about the art market.
Some have said Drahi has acquired Sotheby’s on the cheap. Chinese insurer RWC Partners, which owns roughly 17 per cent of the auction house, complained last month to the Sotherby’s board that the price was too low, the Financial Times revealed.
The deal means Drahi will join French luxury goods magnate Francois Pinault, who owns rival auctioneers Christie’s, as a leading figure in the art world.
Domenico De Sole, chairman of Sotheby’s board of directors, said: “The board of directors would like to thank Sotheby’s shareholders for their vote of confidence in the merger.”
“Mr Drahi’s offer delivers a significant premium to market for our shareholders, including our employee shareholders, and positions Sotheby’s well for the future.”
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Sotheby’s chief executive Tad Smith said: “This is an historic moment for Sotheby’s and we are very pleased to have the validation of the company’s shareholders.”