NO NEW BIDS FOR HIPGNOSIS; SALE RECOMMENDED

Hipgnosis Songs Fund did not get an offer better than that of the $440m it received for 29 music catalogs and will recommend that shareholders accept the original offer at the annual general meeting on Thursday (10/26).

The company was in contact with 17 parties at the beginning of the 40-day Go-Shop process, with eight parties signing NDAs. One first-round non-binding offer was received, but did not subsequently result in a binding bid.

Merck Mercuriadis and Blackstone’s Hipgnosis Songs Capital made the $440m offer, which would provide funds to buy back shares and reduce debt.

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 potential buyer.

The fund recently launched a strategic review that could overhaul its management team.