Hipgnosis faces takeover battle after receiving counter bid worth £1.2bn – Shropshire Star

1 minute, 32 seconds Read

Hipgnosis Songs Fund could be about to face a takeover battle after revealing it would be willing to accept a counter bid, valuing its catalogue of tracks from artists including Beyonce and Mark Ronson at more than £1.2 billion.

The music royalties business had been considering putting itself up for sale, which would take it off the London stock markets after a turbulent year.

On Thursday, it said it had reached a deal with US rival Concord, which offered to buy the business for the equivalent of 93.2p per share, which values it at about £1.1 billion.

But over the weekend, it received a higher proposed bid from US private equity group Blackstone at 1.24 US dollars (£1) per share for the business, valuing the business at 1.5 billion US dollars (£1.2 billion).

Hipgnosis said it had reviewed the proposal and would be minded to recommend the improved deal to its shareholders should Blackstone decide to make a firm offer.

No Time To Die Royal World Premiere – London
Merck Mercuriadis (right) stepped down as Hipgnosis Songs Management’s chief executive in February (Ian West/PA)

Any deal would need backing from investors to go ahead.

The takeover approaches come amid an increasingly strained relationship between the board of Hipgnosis and its investment adviser, Hipgnosis Songs Management.

Merck Mercuriadis, who the launched the music fund alongside former Chic frontman Nile Rodgers, stepped down as the fund manager’s chief executive in February to become its chairman.

Mr Mercuriadis was previously the manager of world-famous acts including Sir Elton John, Beyonce and Guns N’ Roses.

The leadership shuffle meant he would have a less active role in managing the business and would focus more on its engagement with songwriters and artists.

Hipgnosis said it would continue to recommend Concord’s offer to shareholders until Blackstone confirms it wants to make a bid.

Shares in Hipgnosis were up about a tenth on Monday morning.

This post was originally published on 3rd party site mentioned in the title of this site

Similar Posts