Hipgnosis Songs Fund Ltd on Monday backed a $1.57 billion takeover offer from Blackstone Inc, trumping a previous offer from Concord Chorus Ltd, as the pursuit for the music rights publisher took another twist.
Shares in Hipgnosis Songs Fund rose 2.2% to 106.10 pence in London on Monday.
New York-based investment manager Blackstone will pay $1.30 in cash for each share in Hipgnosis, around 104 pence.
It is a premium of 4.0% to Concord’s $1.51 billion offer, worth around 101p per Hipgnosis share. Concord had raised its bid from $1.40 billion last Wednesday, in a bid to thwart reported interest from Blackstone.
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.
Hipgnosis said it no longer recommends that new Concord offer.
Hipgnosis Chair Robert Naylor said: ‘Since we started our strategic review, we have been clearly focused on looking at all the options to deliver shareholder value. We are delighted that, following competitive interests in acquiring Hipgnosis, our investors now have a chance to immediately realise their holding at an increased premium.’
Blackstone has around $1 trillion in assets under management. It has assets in sectors including real estate, public debt and equity and life sciences.
Blackstone said it has closely tracked the performance of Hipgnosis and has been a long term admirer of the music rights catalogues owned by the firm.
Hipgnosis added: ‘Among its investments within the media and entertainment sectors, through its portfolio company Hipgnosis Songs Assets, managed by Hipgnosis Song Management Ltd which is majority owned by Blackstone, Blackstone owns music rights catalogues from leading artists and songwriters. Blackstone’s other investments in the space include SESAC, the US performance rights society and Candle Media.’
Hipgnosis Song Management is Hipgnosis Songs Fund’s investment adviser.
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