SOTHEBY’S SHAREHOLDERS APPROVE ACQUISITION BY PATRICK DRAHI
On Thursday, September 5, 2019, the shareholders of Sotheby’s auction house convened for a special meeting in New York to vote on the proposed acquisition of the company by BidFair USA, which is owned by the French Israeli telecom magnate Patrick Drahi. Ninety-one percent of the shareholders voted in favor of the $3.7 billion deal, which means the auction house is going private after being publicly traded for thirty-one years.
“The board of directors would like to thank Sotheby’s shareholders for their vote of confidence in the merger,” Domenico De Sole, board chair of Sotheby’s, said in a statement. “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.”
After Sotheby’s announced the proposed acquisition on June 17, at least four shareholders tried to block the deal by filing lawsuits that made similar claims of “incomplete and misleading disclosures.” In response, the auction house released a statement saying that shareholder litigation was expected and that it did not expect the suits to impact the sale.
Under the terms of the agreement, shareholders will receive $57 in cash per share of Sotheby’s common stock in a transaction with an enterprise value of $3.7 billion. According to the auction house, the merger remains on schedule and will close in the fourth quarter of 2019.
Tad Smith, CEO of Sotheby’s, said: “This is an historic moment for Sotheby’s and we are very pleased to have the validation of the company’s shareholders. Sotheby’s is on track for another strong season with outstanding auctions set to be held in Hong Kong and Contemporary art sales that will inaugurate our newly-renovated space on Bond Street in London early next month.”
