Eve Maddock-Jones, Investment Week, 4 July 2024:
The departure of Hipgnosis Song Management (HSM) founder Merck Mercuriadis is unlikely to have any major implications for Hipgnosis Songs fund (SONG) shareholders, analysts have argued.
HSM, the investment manager of SONG, said on Tuesday (2 July) that the former chief executive and founder of the company would be stepping out as chair once the takeover deal by private equity giant Blackstone is completed.
Matthew Read, senior analyst at QuotedData, said the announcement about Mercuriadis’ future plans has “zero bearing” on SONG shareholders, as it made no change to the Blackstone deal.
“The portfolio is being sold and this latest announcement from HSM does not change that, or the price that is being paid,” he added.
According to Stifel analyst Sachin Saggar, Mercuriadis’ exit was “expected”, given Blackstone “will want to present a clean break from all the issues that have come to light over the recent past”.
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