Hipgnosis Songs fails to attract superior offer for music catalogue sale
The $440m sale of the trust’s first portfolio, announced on 14 September, had a 40-day «go-shop» provision, where other potential buyers could put forward alternative offers.
The $440m sale of the trust's first portfolio, announced on 14 September, had a 40-day «go-shop» provision, where other potential buyers could put forward alternative offers. Hipgnosis Songs Capital, the initial bidder, would then be offered the right to match it.
In a stock exchange notice today (24 October), the board said that following «substantive engagement» with a number of parties, it did not receive a superior offer.
Hipgnosis Songs music catalogue sale comes under scrutiny as continuation vote looms
SONG was in contact with 17 parties at the beginning of the go-shop, with eight parties signing NDAs. One first round non-binding offer was received, but it fell away.
«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,» it said.
The transaction is set to be voted on by shareholders on Thursday (26 October), as well as the trust's future in a continuation vote.
At the start of last week, Hipgnosis announced it would be pulling its dividend on news its independent portfolio valuer had «materially reduced» its expectations of retroactive royalty payments.
Asset Value Investors urges Hipgnosis shareholders to vote against continuation
A week before its continuation vote, the embattled trust said it would be launching a strategic review, which would consider «all options», including a review of its future management arrangements.
Some shareholders have publicly voiced concerns about the proposed sale,
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