Hipgnosis Songs Fund has long been one of the most active buyers of music catalogues, but now some of its investors want it to also become a seller.
The Financial Times reported this morning on calls for Hipgnosis to divest some of its catalogues, following a long-term slump in the company’s share price.
“The big thing to get the share price moving would be to dispose of less attractive catalogues in the portfolio and give a meaningful return to shareholders,” said one of those investors, CCLA’s Solomon Nevins.
“Where the shares are trading today, there must be something in the portfolio that makes sense selling, to buy shares back.”
This might be one way out of a predicament that has seen Hipgnosis struggling to make further acquisitions, because its falling share price has made it difficult to raise more cash.
The company’s next financial results are due tomorrow (13 July) when we may hear more about its response to the investors’ calls.
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