10th Sep 2020 10:53
(Alliance News) - Hipgnosis Songs Fund Ltd on Thursday said it has acquired boutique full-service song company Big Deal Music Group using proceeds from its July fundraise and the issue of shares.
Hipgnosis is a FTSE 250-listed Guernsey-registered investment company that gives investors exposure to songs and associated intellectual property rights.
The deal is to be funded using proceeds from its GBP200 million equity fundraise, announced July 2, as well as the issue of 17.6 million shares issue at 120.65 pence per share - worth GP21.2 million.
Big Deal Music owns a portfolio of copyright interest in songs like One Direction's 'Story of My Life' and Panic at the Disco's 'High Hopes'. It will be rebranded to Hipgnosis Songs Group with immediate effect.
Merck Mercuriadis, founder of Hipgnosis Songs Fund, said: "Over the last two years it has been my privilege to assemble and work with a world class team of individuals of the highest calibre. With this acquisition, and following the appointment of Ted Cockle and Amy Thomson earlier this week, the scale and quality of people working with me to drive shareholder returns reaches new heights and sets our company on the path for the next chapter of its growth. This is a best in class team and we now have the resource to be on top of every song's destiny all day every day and I'm delighted to welcome Kenny, Casey, Jamie, Dave, Pete and the other 30 plus new team members into the Hipgnosis Family."
On Wednesday, Hipgnosis announced an increase in its target dividend by 5.0% to 5.25 pence per share per year from 5.00p. This followed Tuesday's news that it had appointed the former president of Virgin EMI, Ted Cockle, as its own president and that it had appointed Amy Thomson as chief catalogue officer.
Shares in Hipgnosis were up 0.4% at 122.50p in London on Thursday.
By Anna Farley; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
SONG.L