LONDON (CelebrityAccess) — Private equity giant Blackstone has made proposals about its own bid for Hipgnosis Songs Fund (HSF), offering about $1.5 billion for the music-IP investment vehicle.
Blackstone’s latest indicative offer, proposed over the weekend, values Hipgnosis at $1.24 per share in cash, above Concord’s bid last week of $1.16 a share.
Hipgnosis Songs Fund responded to the proposal, noting that it would endorse Blackstone’s bid if the private equity investor made a formal offer.
“The Board of Hipgnosis (the “Board”) notes the announcement by Blackstone Europe LLP, acting as sub- advisor to the Blackstone Funds (together with its affiliates “Blackstone”) and confirms that it yesterday received an improved proposal to acquire the entire issued and to be issued share capital of Hipgnosis on the terms set out in the Blackstone announcement,” a statement from Hipgnosis said.
“The Board, having reviewed the Proposal with its financial adviser, Singer Capital Markets, has indicated to Blackstone that the Proposal is at a value that it would be minded to recommend to its shareholders should Blackstone announce a firm intention to make an offer pursuant to Rule 2.7 of the Code on such financial terms,” the statement continued.
The fund’s previous investment adviser, Hipgnosis Songs Management, is majority-owned by Blackstone and holds an option to acquire HSF’s portfolio if its investment advisory agreement is terminated. The potential bid from Blackstone is independent from HSF.
Additionally, Sky News reported that the German music company BMG also submitted an indicative offer for Hipgnosis but sources told the newspaper that the bid was substantially below those of both Blackstone and Concord Music.
Sources told Sky News that BMG’s interest in HSF has ‘diminished’ and that the company wasn’t expected to participate in a bidding war with either Concord or Blackstone.
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