Hipgnosis Songs Fund is at the centre of a tug-of-war after its board said an increased bid from Concord is in the “best interests” of the firm last night.
Concord’s latest offer is at $1.24 (99p) per share, which equates to roughly $1.5bn (£1.2bn), following Blackstone’s bid over the weekend.
Last week, its board received and recommended a £1.1bn offer from US firm Concord Music. However, the weekend saw Blackstone muscle in on the deal with a £1.2bn offer, the latest in a series of bids.
In a statement issued late last night, the Hipgnosis’ directors said they: “Believe that the increased Concord offer is in the best interests of Hipgnosis shareholders as a whole, and accordingly unanimously recommend that Hipgnosis shareholders vote in favour of the resolutions required to implement the increased Concord offer to be proposed at the court meeting and the general meeting which are due to be held on or around 10 June 2024.”
In the offer, Concord said it: “Remains committed to becoming the new owner of Hipgnosis” as it was again recommended by Hipgnosis’ board.
Bob Valentine, CEO of Concord, said: “We are pleased to announce this increased offer for Hipgnosis, which has again been unanimously recommended by its Board and has the support of shareholders representing 31.27 per cent of Hipgnosis’ issued share capital.
“We continue to believe that this is the best outcome for Hipgnosis shareholders as it provides them with the opportunity to realise their investment in cash at a significant premium to the price where the shares were trading before our bid last week.”
More to follow.