First East sells Sotheby's Australia

NZX-listed Mowbray Collectables' 19 per cent-owned Australian associate First East Auction Holdings has sold its wholly owned subsidiary that trades as Sotheby's Australia. The sale was to a management buyout comprising Sotheby's directors, senior management and Mowbrays.

Mowbrays said it had made a cash investment to acquire 20 per cent of Sotheby's Australia. The sale was part of necessary debt restructuring by First East, which had substantially reduced its bank debt, Mowbrays said yesterday. It might need to reassess the carrying value of its investment in First East at balance date.

- NZPA