Hipgnosis ready to merge C shares – Hipgnosis Songs Fund has invested enough of the money it raised in its C share fundraise to warrant merging the C share and ordinary share portfolios.
Issuing C shares allows funds to raise substantial amounts of money without diluting returns for existing shareholders.
The NAV of the ordinary share portfolio has fallen from 108.46p to 102.16p. 6.4p of the fall relates to the strength of the pound against the US dollar since the NAV was last calculated. The statement stresses that no new information on the valuation of the song catalogues has come in since 30 September 2019.
By contrast, the NAV of the C share portfolio has risen to 100.08p (from 98p immediately after the money was raised) based on a write up in the values of the songs that it has bought of about 2.5%. They used an independent valuer to come up with this. The implication is that it thought Hipgnosis was buying its catalogues cheaply.
Based on these values, each C share will be exchanged for 0.9796 ordinary shares. Entitlements will be rounded down to the nearest share.
SONG : Hipgnosis ready to merge C shares