Last month, Hipgnosis Songs Fund revealed its plan to revive its share price: selling 29 of its music catalogues to sister fund Hipgnosis Songs Capital.
However, it seems shareholders in the company may require some more persuasion if they are to approve the plan.
The Financial Times reported on Friday that some of Hipnosis’s major shareholders are “preparing to block the sale” on the grounds that the $440m being offered is not enough.
“It’s all about price — if it was 30 per cent higher then it might make sense. We don’t really want to be parted from the assets,” one ‘top 10 investor’ told the FT.
The report also suggested that the recent deal where Concord acquired rival fund Round Hill Music Royalty Fund for just under $469m may have stiffened the resolve of Hipgnosis’s shareholders.
The unrest comes ahead of a separate shareholder vote – expected to happen later this month – on the continuation of Hipgnosis Songs Fund itself.
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