21st Jan 2021 08:58
(Alliance News) - Hipgnosis Songs Fund Ltd on Thursday announced an share placing and subscription, and the acquisition of record producer Bob Rock's catalogue.
The British Guernsey-registered music royalty investment company said the initial share issue is at a price of 121 pence per share, which represents a 1.2% discount to the closing share price of 122.5 pence on Wednesday and a 2.3% premium to the adjusted operative net asset value of 118.31 pence per share.
Shares in Hipgnosis were down 0.2% at 122.22 pence in London on Thursday.
Hipgnosis said it expects to use the net proceeds to buy more music catalogues, which it believes will offer revenue growth opportunities through its song management, as well as increasing the portfolio diversity.
The company didn't give an amount it is aiming for through the equity raise, which it said is not underwritten and is conditional upon the approval of a prospectus in connection with the initial shares issue by the Financial Conduct Authority, expected later Wednesday.
N+1 Singer Capital Markets Ltd, JP Morgan Securities PLC and RBC Europe Ltd have acted as joint bookrunners for the raise.
Hipgnosis declared a 1.3125p interim dividend for the period from October 1 to December 31, unchanged from the July-September quarter.
Additionally, Hipgnosis has bought record producer and mixer Bob Rock's catalogue for an undisclosed amount. Rock's producer rights comprise 43 songs, including some of the records made by US heavy metal band Metallica and Canadian pop singer Michael Buble.
"The breadth of Bob Rock's enormous successes are almost impossible to match by any creator in the history of music. From Metallica's most famous 'Black Album' to Michael Buble's 'Christmas', he has produced some of the biggest albums of all time that continue to be evergreen, year in and year out. Everyone who has worked with Bob knows he is a difference maker, which is why the artists he has produced end up making multiple albums with him which are almost always their biggest successes," said Merck Mercuriadis, founder of Hipgnosis Songs Fund.
By Zoe Wickens; [email protected]
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