|
Blackstone's formal offer valued the music rights investor at
$1.30 per share, the companies said, higher than Concord's $1.25
per share offer last Wednesday.
Hipgnosis shares, which have rallied since the takeover
interests, rose 2.7% to 1.06 pounds ($1.33) in early trade.
The deal will see more than 65,000 songs, including tracks by
Blondie and Neil Young, added to Blackstone's music rights
portfolio, which already includes songs by Justin Bieber and
Justin Timberlake.
Blackstone has also invested in U.S. performance rights
organisation SESAC, whose affiliates include rock legend Bob
Dylan and 16-time Grammy Award winner Adele.
Its sweetened offer on Monday comes days after Concord outbid
the world's largest private equity firm by 10 cents and had won
Hipgnosis's board backing for the deal.
The fund's board withdrew its recommendation for the offer from
Nashville-based music firm Concord.
Concord declined to comment.
"We are delighted that, following competitive interests in
acquiring Hipgnosis, our investors now have a chance to
immediately realise their holding at an increased premium,"
Hipgnosis Chairman Robert Naylor said.
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.
The Blackstone proposal is independent of HSM.
Founded by industry veteran and ex-CEO Merck Mercuriadis in
2018, Hipgnosis 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.
HSM had earlier warned Hipgnosis against terminating the
advisory agreement as the previously agreed Concord deal
involved the U.S.-based firm taking over the management of
Hipgnosis' assets.
($1 = 0.7989 pounds)
(Reporting by Prerna Bedi and Yadarisa Shabong in Bengaluru;
editing by Sherry Jacob-Phillips)
[© 2024 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
