TOP NEWS: Concord looks to thwart Blackstone with raised Hipgnosis bid

(Alliance News) - Hipgnosis Songs Fund Ltd on Wednesday said it had reached an agreement on the ...

Alliance News 24 April, 2024 | 6:33PM
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(Alliance News) - Hipgnosis Songs Fund Ltd on Wednesday said it had reached an agreement on the terms of an increased takeover offer from music rights acquirer Alchemy Copyrights, which trades as Concord Chorus Ltd.

The revised cash bid values Hipgnosis at USD1.51 billion, or 101 pence per share.

The offer represents a 43% premium to the company's closing price of 71p on April 17.

Last Thursday, Concord offered to pay USD1.16, or 93.2p, in cash per share, which valued Hipgnosis at GBP1.40 billion.

Since then reports suggested a rival cash bid could be forthcoming from New York-based investment manager Blackstone Inc, although an official approach has yet to materialise.

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

Hipgnosis Songs Fund, is a London-based 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.

Los Angeles-based Alchemy trades as Concord, and has been acquiring music rights and companies for over ten years. Since 2015, it has deployed over USD2.8 billion of capital and completed over 100 transactions in recorded music, music publishing and theatricals.

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

Concord said it had noted the announcement by Blackstone of its possible counter-offer for Hipgnosis. But it remains committed to becoming the new owner of Hipgnosis, spurring the increased offer.

Concord said its proposal had the backing of shareholders representing around 31% of the Hipgnosis share capital.

Concord Chief Executive Bob Valentine said: "We continue to believe that this is the best outcome for Hipgnosis shareholders as it provides them with the opportunity to realise their investment in cash at a significant premium to the price where the shares were trading before our bid last week."

Shares in Hipgnosis Sounds Fund closed up 0.4% at 101.40 pence in London on Wednesday.

By Jeremy Cutler, Alliance News reporter

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Hipgnosis Songs Ord 101.60 GBX 0.40 -

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