Sotheby is being taken privately by group owned by art collector Drahi
Sotheby's auction in Hong Kong.
Anthony Wallace AFP | Getty Images
On Monday, Sotheby's auction house announced that it has entered into an agreement to purchase BidFair USA, a venture owned by French media contractor and art collector Patrick Drahi.
Sotheby's stakeholders will receive $ 57 per share in cash as a result of the transition, a 61% premium to the company's share price on Friday. The deal is valued at $ 3.7 billion.
The transaction, if approved by shareholders, would cause Sotheby to return to private ownership after 31[ads1] years as a public company traded on the New York Stock Exchange.
The shares are gathered about 57% in early trading Monday after the news.
President of French Telecom and Media Group Altice, Patrick Drahi smiles during the inauguration of Altice Campus in Paris October 9, 2018.
Eric Piermont | AFP | Getty Images
"Patrick Drahi is one of the most renowned entrepreneurs in the world and on behalf of everyone in Sotheby, I would like to welcome him to the family," said Sotheby's CEO Tad Smith in a press release. "This acquisition will allow Sotheby to accelerate the successful growth initiative program in recent years in a more flexible private life."
Sotheby was No. 2 in the world among art auctions in the first half of 2018 with a turnover of over NOK 2 billion. CNBC's David Faber first reported that Sotheby would be sold and called people familiar with the case.
LionTree Advisors serves as financial advisor to Sotheby, while Sullivan & Cromwell acts as a legal advisor.
