Hipgnosis' bidding war intensifies as Concord hikes offer for Shakira music owner

Hipgnosis Songs Fund

25/04/2024 08:46

April 25 (Reuters) - Shares of Hipgnosis Songs Fund
 SONG.L  climbed on Thursday after Apollo-backed Concord outbid
a proposal by private equity giant Blackstone  BX.N , launching
a bidding war for the owner of music rights of artists including
Shakira and Blondie.
    Concord, a Nashville-based independent music company, late
on Wednesday sweetened its bid for Hipgnosis to $1.25 per share,
or about $1.51 billion, slightly higher than Blackstone's
proposal of $1.24 apiece.
    Shares of Hipgnosis were up 1.1% at 1.028 pounds ($1.28), as
the fresh offer fuels the prospect of a higher counter-bid from
the world's largest private equity firm.
    Concord had last week agreed to buy the music rights
investment fund at $1.16 apiece, before Blackstone outbid it
over the weekend.
    While Concord's offer is a formal one, Blackstone has yet to
table a firm bid or announce its intention to make a formal
offer as per takeover rules in the UK. 
    Blackstone is also a majority shareholder in Hipgnosis'
investment adviser, Hipgnosis Songs Management (HSM), which
manages artists and songwriters for the fund and holds a call
option to make a higher offer for Hipgnosis' portfolio of songs
if their investment advisory agreement was terminated.
    The Blackstone proposal, however, is independent of HSM.
    The takeover battle for Hipgnosis comes as the fund, founded
by industry veteran and ex-CEO Merck Mercuriadis in 2018,
started a strategic review last year after a shareholder vote
against the continuation of the fund led to a board overhaul, a
portfolio revaluation, and a dispute with HSM over the call
option. 
        
       
    ($1 = 0.8004 pounds)

 (Reporting by Yadarisa Shabong in Bengaluru; Editing by Sherry
Jacob-Phillips)
 ((Yadarisa.Shabong@thomsonreuters.com; +91 9742735150;))