(London) Bids rise on the British music catalog fund Hipgnosis Songs Fund (HSF), owner of titles by Shakira and Blondie, after an improved offer from the American Concord, while the giant Blackstone assures “evaluate its options” .
Concord increased its offer to $1.25 per share, which “values the entire capital” of Hipgnosis at $1.5 billion, according to a press release published late Wednesday, which specifies that the Board of Directors The administration of the target company supports this proposal.
This is very slightly above a proposal of $1.24 from Blackstone made a few days ago, and significantly more than a first proposal from Concord at $1.4 billion.
The new offer boosted Hipgnosis’ shares on the London Stock Exchange, which rose 1.66% to 103.08 pence Thursday around 5:20 a.m. (Eastern time).
“Blackstone strongly advises Hipgnosis shareholders not to take any action and is considering its options. A new announcement will be made in due course,” responded the asset manager in a press release on Thursday.
Hipgnosis – in financial difficulties for months – said on Monday that it was in favor of the offer from the American fund Blackstone if it was confirmed, but added that to the extent that the proposal was not firm, it continued to recommend to its shareholders Concord’s offer.
The Hipgnosis fund manages the rights to around 150 music catalogs and a few months ago still claimed a net asset value of $3 billion.
After the announcement in December of a loss tripled over one year, HSF, which also manages the catalogs of stars such as Justin Bieber and the Red Hot Chili Peppers, also announced last month that the valuation of its assets would be lowered by more than a quarter.
Given this significant discount, the Board of Directors said it wanted to use the company’s available cash to reduce debt and had decided not to distribute a dividend until further notice.