Blackstone considers bid for Hipgnosis Songs Fund

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Hipgnosis Songs Fund is considering Blackstone’s offer after accepting Concord’s offer amid an ongoing dispute with an investment adviser.

Blackstone considers bid for Hipgnosis Songs Fund
Hipgnosis Songs Fund SONG

Hipgnosis Songs Fund (LSE: SONG) has announced that it is open to a cash offer from Blackstone Inc., should one be proposed. The announcement comes hot on the heels of a $1.40 billion offer by Alchemy Copyrights, trading as Concord Chorus Ltd, which Hipgnosis had already accepted.

Blackstone’s offer values ​​each share of the Hipgnosis Songs Fund at $1.24, giving a total valuation of $1.50 billion for the company. Hipgnosis, after careful consultation with its financial advisor Singer Capital Markets, has expressed its intention to recommend Blackstone’s offer to its shareholders, should Blackstone have a firm intention to make an offer.

However, Hipgnosis has also made it clear that there is no certainty about Blackstone’s offer, nor the terms it will entail. Accordingly, shareholders are advised not to take any immediate action regarding Blackstone’s approach.

Despite Blackstone’s interest, Hipgnosis remains committed to Concord’s $1.40 billion offer, which would see shareholders receive $1.16 in cash per share. Notably, Concord’s offer also includes provisions for additional payouts, which could total up to $25 million, subject to the termination of its investment advisor agreement with Hipgnosis Song Management Ltd.

This offering from Concord comes amid an ongoing dispute between Hipgnosis Songs Fund and its investment advisor, Hipgnosis Song Management, led by founder Merck Mercuriadis. Allegations of misconduct against the latter have fueled tensions, particularly following a rejected proposal to sell part of the fund’s portfolio to a joint venture involving Blackstone and Hipgnosis Song Management. This disagreement led to significant management changes within the fund.

Shares of the Hipgnosis Songs Fund showed little movement on Friday, closing 0.5% lower.

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