TOP NEWS: Hipgnosis Songs would back possible Blackstone counter bid

(Alliance News) - Hipgnosis Songs Fund Ltd on Sunday said it would be "minded" to accept an ...

Alliance News 21 April, 2024 | 8:31AM
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(Alliance News) - Hipgnosis Songs Fund Ltd on Sunday said it would be "minded" to accept an official cash bid from Blackstone Inc, should one be forthcoming.

Hipgnosis Songs Fund, a music investment company, which has bought up the royalty rights to song catalogues of artists including the Red Hot Chili Peppers, Journey and Neil Young, had accepted a USD1.40 billion bid from Alchemy Copyrights on Thursday. Alchemy trades as Concord Chorus Ltd.

The Blackstone bid values each Hipgnosis Songs Fund share at USD1.24 each, the company overall at USD1.50 billion.

"The board, having reviewed the proposal with its financial adviser, Singer Capital Markets, has indicated to Blackstone that the proposal is at a value that it would be minded to recommend to its shareholders should Blackstone announce a firm intention to make an offer pursuant," Hipgnosis Songs Fund said.

"There can be no certainty that a firm offer will be made for the company by Blackstone, nor as to the terms of any such offer. Accordingly, shareholders are advised to take no action at this time with regard to the approach by Blackstone."

Hipgnosis Songs Fund said it still backs the Concord bid, which would see the suitor pay USD1.16 in cash for each share in the London listing, a valuation of USD1.40 billion.

In September 2023, Concord bought former London listing Round Hill Music Royalty Fund Ltd for USD468.8 million.

Concord said Higpnosis Songs Fund shareholders will stand to receive up to an extra USD25 million in total, if the investment adviser deal with Hipgnosis Song Management Ltd is ended.

Hipgnosis Songs Fund is in dispute with its investment adviser, alleging misconduct against Hipgnosis Songs Management and its founder Merck Mercuriadis.

The dispute was sparked by an arrangement, later rejected by Hipgnosis Songs Fund shareholders, to sell part of the fund's portfolio to a joint-venture between Hipgnosis Songs Management and Blackstone. This triggered board changes at the fund.

Hipgnosis Songs Fund shares closed 0.5% lower at 91.52 pence each in London on Friday. It has a GBP1.11 billion market capitalisation.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Hipgnosis Songs Ord 101.80 GBX 0.20 -

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