Skip to main content
The Markets by Proactive
Go to Proactive UK
Proactive UK has moved. Proactive’s coverage of London’s small caps continues on proactiveinvestors.com Go there →
Advertisement
The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
Advertisement
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Investments and investor services

Hipgnosis would-be rival bidders say music rights are too expensive

Hipgnosis Songs Fund Limited (LSE:SONG) said it received a lukewarm reception for its tranche of music rights after shopping it around with would-be buyers saying they weren't prepared to match a US$440 million offer already on the table from Blackstone.

In all, 17 groups were contacted as part of the 'Go-Shop' process, with eight eventually signing non-disclosure agreements.

There were no binding offers, the company said, adding: "The board received feedback through the process that a number of the parties assessed that they could not justify paying a higher price than the offer from the buyer for the first disposal."

Investors have been split on the sale amid concerns over a lack of transparency and potential conflicts of interest.

As a result, shareholders face two votes: One to approve the disposal and another called a continuation resolution. The latter is normally a formality for funds that goes through on the nod every five years. However, for SONG the risk is potentially existential.

The music rights investment company, meanwhile, has launched a strategic review.

Included in the Hipgnosis collection are Justin Bieber's 'Baby', Rihanna's 'Umbrella' and Beyonce's 'Single Ladies (Put a Ring on It)'.

Advertisement
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK