29th Apr 2024 11:50
(Alliance News) - The ongoing fight to win control of Hipgnosis Songs Fund Ltd was a reward for "long-suffering" investors, analysts on Monday said.
Shares in Hipgnosis Songs Fund rose 1.2% to 105.00 pence in London on Monday.
On Monday, New York-based investment manager Blackstone Inc said it will pay USD1.30 in cash for each share in Hipgnosis, around 104 pence.
It is a premium of 4.0% to a rival bid from Concord Chorus Ltd worth USD1.51 billion, or around 101p per Hipgnosis share.
Concord had raised its offer from an initial USD1.40 billion made last Wednesday, in a bid to thwart reported interest from Blackstone.
Hipgnosis Songs Fund, is a London-based music investment company, which has bought up the royalty rights to song catalogues of artists including the Red Hot Chili Peppers, Journey and Neil Young.
Hipgnosis said it no longer recommends the upgraded Concord offer.
AJ Bell's Investment Director Russ Mould remarked: "Another day, another offer for Hipgnosis Songs Fund. Its takeover situation is playing out like an extended 12 [inch] mega-mix of one of its artists, jumping back and forth between suitors Concord and Blackstone as they raise their offers."
Mould said both parties "clearly want to be victorious and the investment trust's board seem happy to switch allegiance to whichever is offering the most money."
"Ultimately, the winner could be the one with the biggest chequebook. Long-suffering investors will welcome any extra boost to the takeout price they can get," he felt.
Susannah Streeter, head of money and markets, Hargreaves Lansdown said the latest bid would be "fresh music to the ears for shareholders, who’ve seen their holdings jump in value as the bids sailed in."
She said it was a "turn up for the books" following a volatile run which saw shares sink to a low after the value of the fund’s music portfolio was slashed by more than 25%.
By Jeremy Cutler, Alliance News reporter
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