Hipgnosis Songs Fund Limited (LSE:SONG)’s accepted takeover bid from Blackstone is an “attractive one for shareholders,” according to analysts, and should prelude further sector activity.
Blackstone’s $1.30 (104p) per share offer was accepted by Hipgnosis’ board on Monday, after trumping a rival bid from Concord, and valuing the company at US$1.57 billion.
According to Liberum analysts, the deal, which is now in shareholders’ hands to accept or reject, “should bring to an end what has been largely a painful saga”.
Blackstone’s potential takeover should also prompt further activity in the music sector, analysts from the bank said, as “discounts remain near all-time highs”.
“The bidding war highlights the attractiveness of the asset class, which has been underpinned by a number of tailwinds including streaming growth and increased royalty payout rates.
“We expect to see further corporate activity in the sector, which should start to bring confidence back to the market.”
Hipgnosis shares climbed 1.2% to 105p on Monday following news of the latest offer, having jumped late last week.