HIPGNOSIS INVESTORS REJECT CATALOG SALE
The board of Hipgnosis Songs Fund Limited has six months to forward proposals to shareholders for the reconstruction, reorganization or winding-up of the company as a result of votes taken at Thursday’s annual general meeting.
Voters voted to not proceed with the proposed sale of 29 music catalogs to Hipgnosis Songs Capital and no on a resolution “to continue running the fund in its current form.”
Merck Mercuriadis, CEO of Hipgnosis Song Management and founder of Hipgnosis Songs Fund, said the votes mark “an opportunity to reset and focus on the future.”
“The board and the investment adviser have each engaged widely with investors over recent months,” said Sylvia Coleman, senior independent non-executive director of Hipgnosis Songs Fund. “While shareholders have not supported our proposed transaction or the continuation vote, it is clear that they share our belief in the inherent quality and potential of these assets. The directors are now expediting the appointment of a new chair who will drive the Strategic Review we have already announced, with a clear focus on delivering improved shareholder value.”
The board is at an advanced stage of an expedited process to appoint a new chair following Andrew Sutch’s stepping down as a director and chair of the board.
Mercuriadis said: “Our conversations with shareholders have revealed a consensus that they are enthusiastic about the quality of the company’s iconic portfolio of songs, however it is also clear that they are asking for change and we respect that feedback. Hipgnosis Song Management’s new management team and I have already started taking the relevant necessary action to meet the expectations of shareholders.
“Our commitment to the company’s shareholders remains absolute and we look forward to working with a new chair and reconstituted board during this period to ensure that the Hipgnosis Songs Fund delivers for its shareholders. During this process, shareholders can be certain that Hipgnosis Song Management will continue to manage the Songs with the greatest duty of care as always.
“Finally I would like to thank [board members] Andrew Sutch, Andrew Wilkinson and Paul Burger for their important contributions to the company over the last almost six years."
