Deal to take Sotheby’s private will throw handy cloak of secrecy over sales
Chinese art collectors and art dealers on Tuesday reacted positively to the news that French billionaire Patrick Drohi had offered to buy Sotheby’s auction company, which would become a private company for the first time in more than 30 years.
Chen Dongshanheng, with the largest single stake of Chinese businessman Sotheby’s, did not comment on the $ 3.7 billion deal for private privatization of the 275-year-old auction house through its insurance company Tianjing Insurance.
For me, artwork has always been a human work and the key to fulfilling the flexibility is key. In Beijing, the 25-year-old M. Woods Museum co-founder and an active art collector Michael Shufu Huang said, “I think Sotheby’s should be more flexible after becoming a private company.”
In relation to the kind of flexibility the Chinese buyers are looking for, an agent who asked not to be identified due to the sensitivity of the subject, the art market often works in gray areas and a private company wishes more customers wishes Can adjust from
For example, transactions and locations can now be kept secret. You should also be able to offer more flexible payment terms. Earlier, Sotheby was forced to present its audited results, including tax bills and general knowledge.
Feng Feng, the owner of the Star Gallery in Beijing, said that privatization of Sotheby’s reflects the challenges faced by China as well as the art market globally.
“The deal coincides with the fact that after the 10 to 20 years of growth, the secondary market is facing new pressures, so prices have increased to that point where we have reached a cool market.
” Auction houses played an important role in increasing prices during this period and now the market has started adjusting. It is better to be a private company and not disclose financial results regularly. ”
Last year, Sotheby announced an average profit of approximately $ 130 million. Its flagship Asian auction in Hong Kong sold record $ 1 billion and other holdings. But before the release of a demo due to pessimism about the art market, stock price fell nearly 40 percent last year.
Valerie Wang Kungi, an art consultant, who frequently participate in the auctions on behalf of the customer, said that the sale should not affect the work of auction house in China.
Chain Private Company had bought 13.5 percent stake in Sotheby’s in the open market in 2016, and it was considered when he learned to develop China’s Guardian, its own auction house and China’s second largest company. Did it.
“There was no synergy between the two in China, so the exit of the chain will not really affect Sotheby’s,” Wang said.
Sotheby’s Asia and China Guardian did not comment on the offer of Dow. Earlier, Sotheby said that his board had approved the sale and that the auction was believed in the management of the house.
The 54-year-old traitor is a founder and controlled shareholder of Altis, who provides telecommunications services in France and elsewhere. Auction house will pay 61 percent premium on Sotheby’s closing price on Friday, $ 57 per share.
Sotheby’s, Christie founded in London, in 1766 by James Christie, another French businessman François Pinúal was sold in 1998. They were also seized.
“The deal coincides with the fact that after 10 to 20 years of growth, the secondary market is facing new pressures, so prices have increased so much that we have ended up in a fuzzy market.”
Auction houses played an important role in pushing during that period. Now the market has started adjusting. It is better to be a private company and it is not necessary to disclose financial results on a regular basis. ‘
Last year, Sotheby’s posted a revised profit of approximately $ 130 million. Its flagship Asian auction in Hong Kong sold record $ 1 billion and other holdings. But the price of the stock fell nearly 40 percent before the declaration of offer due to pessimism about the art market last year.
Valerie Wang Kungi, an art consultant, who frequently participates in the auctions on behalf of the customer, said that the sale should not affect the auction house work in China.
Chen privately bought 13.5 percent stake in Sotheby’s in the open market in 2016, and it was believed that he had to learn to develop the Chinese Guardian, his own auction house and the second largest Chinese company. Did it.
Sotheby’s Asia and China Guardian did not comment on the offer of the traitor. Earlier, Sotheby said that his board had approved the sale and that the auction was believed in the management of the house.