Hipgnosis shares spike again as Blackstone enters fray

Shares in Hipgnosis Songs Fund spiked again on Monday when private equity outfit Blackstone made a potential $1.5bn offer to buy the troubled music rights investor, setting up a bidding war with Concord Chorus.

Blackstone Group L.P

$194.01

11:09 21/11/24

4.85%

$8.98

FTSE 250

20,349.92

16:49 21/11/24

n/a

FTSE 350

4,491.25

16:49 21/11/24

n/a

FTSE All-Share

4,448.06

17:14 21/11/24

n/a

Hipgnosis Songs Fund Limited NPV

101.80p

16:30 26/07/24

0.00%

0.00p

Hipgnosis on Monday said it would recommend a higher Blackstone bid if it tabled a formal offer. The investment company's fourth and latest proposal valued Hipgnosis at $1.24 per share in cash. HSF shares were up almost 10% in morning trade.

Last week Hipgnosis - which holds the rights to music by Shakira and the Red Hot Chilli Peppers, among others, in its catalogue - agreed to a $1.4bn with Concord Chorus, valuing it at $1.16 per share in cash.

"The board and its advisers will continue to provide Blackstone and its advisers access to confirmatory due diligence, to enable Blackstone to announce a firm intention to make an offer, as soon as possible," Hipgnosis said.

A report also emerged on Monday that rival label BMG's pitched a low-ball bid below Blackstone and Concord.

However, the label's interest in a takeover of was said to have diminished, and insiders said they did not expect it to compete, Sky News reported citing unnamed sources.

Blackstone on Saturday revealed it had tabled previous offers for HSF, as tensions between the fund and its investment adviser, Hipgnosis Song Management (HSM) - in which Blackstone holds 51% - escalated.

Reporting by Frank Prenesti for Sharecast.com