The bidding war for Hipgnosis Songs Fund (LSE: SONG) intensified on Thursday as Apollo-backed Concord sweetened its cash offer to $1.25 per share, topping a previous $1.24 per share proposal from private equity giant Blackstone.
Shares of Hipgnosis, which owns music rights of artists like Red Hot Chili Peppers, Journey and Neil Young, climbed 1.1% at the open on Concord’s revised $1.51 billion bid.
Concord’s new offer follows its initial $1.16 per share agreement last week to acquire the music rights investment fund, before Blackstone made a higher weekend bid.
While Concord has now formalised its superior proposal, Blackstone has yet to officially table a firm bid under UK takeover rules.
Complicating matters, Blackstone holds a majority stake in Hipgnosis Songs Management (HSM), the external adviser that manages the fund’s artist and songwriter catalogues. HSM also has a call option to potentially buy out Hipgnosis’ song portfolio if its advisory deal is terminated.
The takeover battle erupted after a shareholder vote against fund continuation last year prompted a strategic review, board overhaul and valuation dispute with HSM at Hipgnosis, which was founded by industry veteran Merck Mercuriadis in 2018.
Subscribe to Investomania for more Hipgnosis Songs Fund news and updates.
