Lauren Hardy, Portfolio Adviser, 25 JUNE 2024:
Revised conditions of Bidco’s all-share purchase of Hipgnosis Songs Fund (SONG) are moving closer to fruition, according to a London Stock Exchange announcement published today (25 June), following a revised cash offer from Bidco for the beleaguered investment company.
On 3 June, Blackstone-owned Lyra Bidco Limited increased its cash offer for SONG to $1.31 per share, a $0.01 increase from the initial price agreed in April. The higher offer, which was agreed to following discussions between the boards, was partially due to Hipgnosis incurring lower-than-expected adviser fees.
According to QuotedData, this would amount to a premium of 49.2% compared to SONG’s closing share price of 71p on 17 April – the last business day before the offer period began.
Amid these board discussions, it was agreed the revised share price would be implemented via a court-sanctioned scheme of arrangement, subject to terms and conditions set out by SONG in a published circular on 14 June.
According to today’s announcement, the applicable waiting period under the ‘Hart-Scott-Rodino Antitrust Improvements Act of 1976’ has now expired, satisfying a condition of the deal and meaning the acquisition has moved one step further towards completion.
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