Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Hipgnosis shares surge on $1.4bn Concord Chorus offer
(Sharecast News) - Shares in troubled Hipgnosis Songs Fund rocketed by a third on Thursday after the music rights investor said it had agreed a $1.4bn takeover by US-based Concord Chorus, a music and theatrical rights firm, in attempt to end months of infighting over the company's leadership and secure its future.
Hipgnosis Songs investors will get $1.16 a share in cash, a hefty 32% premium from Wednesday's closing price.
Concord is indirectly controlled by Alchemy Copyrights, which acquired music copyright-focused investment firm Round Hill Music Royalty Fund last year for $469m. A successful deal would see it acquire a vast catalogue of songs from artists including Neil Young, Blondie, Shakira, Red Hot Chili Peppers and Carole Bayer Sager.
"The acquisition represents an attractive opportunity for our shareholders to immediately realise their holding at a premium, mitigating the risks we see ahead to achieving a material improvement in the share price," said Hipgnosis chairman Robert Naylor.
"At the same time, the board is confident that Concord, one of the world's leading independent music companies, is the right owner to take on the Hipgnosis catalogue and manage it in the interests of composers and performers."
"We would now encourage Hipgnosis Song Management, the company's investment adviser and Blackstone, which is HSM's majority owner, through funds they manage and/or advise, to agree an orderly termination of the Investment Advisory Agreement."
"This would enable the payment of a larger consideration under the agreed transaction with Concord and bring to an end a period of uncertainty for all Hipgnosis stakeholders," he added, referring to a row between the fund and its advisors over portfolio valuations.
Shareholders In October rejected a proposed $440m deal by the fund to sell 29 catalogues to Hipgnosis Songs Capital - a partnership between Blackstone and the fund's investment adviser Hipgnosis Song Management (HSM).
The dispute led to an overhaul of the board, with Robert Naylor joining as chairman in November.
Hipgnosis was founded in 2018 by Merck Mercuriadis, who managed artists including Elton John and Beyoncé, and became an adviser to the business. A spending spree saw it buying up catalogues to cash in on the popularity of streaming services, but a rise in the value of other asset classes as interest rates soared saw investors move elsewhere.
To make matters worse an independent review in March slashed the value of its music portfolio by 26% and shareholder payouts were suspended. Hipgnosis had already been forced to offload 20,000 unspecified "non-core" songs for $23.1m - a 14% discount - in December to help pay off debt.
Reporting by Frank Prenesti for Sharecast.com
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Doing Business with Fidelity | Diversity, Equity & Inclusion Reports | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Staying secure | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.