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Hipgnosis Songs Fund sold for $1.4 billion to Concord, shares surge

Hipgnosis Songs Fund (LSE: SONG) shareholders saw their investment rise in value along with the announcement of a $1.4 billion cash acquisition by Concord Chorus Ltd (Concord) on Thursday. The deal, a 32% premium over …

Hipgnosis Songs Fund (LSE: SONG) shareholders saw their investment rise in value along with the announcement of a $1.4 billion cash acquisition by Concord Chorus Ltd (Concord) on Thursday. The deal, a 32% premium over SONG’s Wednesday closing price, will see Concord pay $1.16 or 93.2 pence per share. This news sent SONG’s shares soaring over 30%.

This comes amid an ongoing dispute between SONG and its investment advisor, Hipgnosis Songs Management (HSM), concerning valuation and governance. The song fund believes Concord is best positioned to manage its music catalogue.

The agreement includes a potential bonus of $25 million for SONG shareholders contingent on terminating the investment advisory deal with HSM.

Financial difficulties prompted SONG to prioritise debt repayment and suspend dividend payouts earlier this year. An independent valuation found the company’s portfolio value to be lower than previously estimated.


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