Blackstone set to sweeten Hipgnosis offer as part of revised bid, FT reports (updated)

Hipgnosis Songs Fund

03/06/2024 05:36

(Adds details in paragraph 1-3, background in paragraphs 5-6)
       June 3 (Reuters) - Blackstone  BX.N  will sweeten its
offer for Hipgnosis Songs Fund  SONG.L  by a cent to $1.31 from
$1.30 as part of a revised bid that would value the firm at
nearly at $1.6 billion, the Financial Times reported on Monday.
    The deal will need approval from 75% of voting shareholders
of Hipgnosis, that owns the music rights of artists such as
Shakira and Red Hot Chili Peppers, the newspaper said, citing
people familiar with the matter.  
    The offer would also require approval from the UK's Takeover
Panel, and an announcement of the deal could come as early as
Monday, the report said.     
    Blackstone and Hipgnosis did not immediately respond to
Reuters' requests for comment. 
    Blackstone is a majority shareholder in Hipgnosis'
investment adviser, HSM, which manages artists and songwriters
for the fund and holds a call option to make a higher offer for
Hipgnosis' portfolio, if their advisory agreement were to be
terminated.
    Hipgnosis, founded in 2018, started a strategic review last
year after a shareholder vote against the continuation of the
fund led to a tumultuous period and a dispute with HSM over the
call option.

 (Reporting by Gursimran Kaur in Bengaluru; Editing by Mrigank
Dhaniwala)
 ((GursimranKaur.Mehar@thomsonreuters.com;))