Hipgnosis Songs Fund Agrees $1.4 Billion Sale to Concord Chorus

Non-public fairness large Blackstone bid $1.5 billion to purchase Hipgnosis Songs Fund on Saturday (April 20), marking a big escalation within the battle for management of the troubled music royalty fund and its assortment of rights to songs by Neil Younger, Journey, Lindsey Buckingham, Blondie and others.

Blackstone is providing $1.24 per share in an all-cash provide that represents an 8.7% premium over the day past’s closing share value, and is considerably increased than the $1.4 billion takeover bid that Nashville-based Harmony Refrain made for the fund earlier this week.

Blackstone already owns two different entities beneath the Hipgnosis title — the personal music belongings funding fund Hipgnosis Songs Capital and the funding advisor Hipgnosis Music Administration — and its bid on Saturday confirmed the personal fairness behemoth is prepared to flex its muscle to take care of belongings beneath the Hipgnosis umbrella.

The five-year-old, London-listed Hipgnosis Songs Fund has minimize its internet asset worth and shareholder dividends in current months, because it struggled to deal with accounting errors and infighting between its board and funding supervisor which have angered traders already pissed off by an underwhelming inventory value.

On Thursday (April 18), the board of administrators introduced in a submitting with the London Inventory Trade that it had agreed to recomment a $1.402 billion proposed takeover bid from Harmony to shareholders, which values every Hipgnosis share at £0.93 ($1.14). Whereas the board mentioned that institutional traders representing 30% of the fund’s excellent shares have been on board to vote in favor of the cope with Harmony, it nonetheless wants shareholder approval from traders holding a complete of 75% of shares.

Blackstone’s Hipgnosis Music Administration, the funding adviser to the general public fund and the personal fund (Hipgnosis Songs Capital), has the precise to outbid Harmony and some other rival bidders to take the fund’s belongings personal, in response to an possibility in its contract laid out when the fund went public in 2018.

The choice was created with the sensitivities distinctive to music rights in thoughts. Hipgnosis Songs Fund was based and constructed by Merck Mercuriadis, a longtime music government and supervisor for artists like Elton John, Beyoncé and Weapons N’ Roses. Mercuriadis used his relationships within the music trade to construct the fund’s portfolio of rights to hit songs, and this feature within the funding advisory contract was designed to provide artists confidence that their catalogs would by no means commerce palms — one thing that famously angered Taylor Swift.

Nevertheless, since Hipgnosis Songs Fund traders served the board of administrators the equal of a no-confidence vote final fall, this feature has offered hurdles for the board in its effort to safe outdoors bids for the portfolio.

In its provide, which references Harmony’s bid as $1.16 per share because of fluctuations in alternate charges, Blackstone mentioned it “strongly encourages the board of Hipgnosis to recognise the numerous enhance in worth accessible to all shareholders beneath the phrases of its Fourth Proposal, over the $1.16 as set out within the Harmony Provide, and to work with Blackstone to achieve settlement on a unanimously advisable Agency Provide in an expeditious method.”

By RemmyTex

Remmytex is a blogger, promoter, entrepreneur and and a businessman. Call or send a Whatsapp message for more information on +2349075664854 or you can email remmytexblog1@gmail.com

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