Valeria Martinez, Investment Week, 18 April 2024:
Hipgnosis Songs Fund’s (SONG) share price has soared by nearly a third on the back of a $1.4bn deal to acquire the trust, with potential for the offer to spark a bidding war.
After enduring months of turmoil, investors in the £1.6bn music royalties trust are hoping the Apollo-backed deal proposed by Concord Chorus finally puts an end to the saga.
The cash offer values each Hipgnosis share at $1.16, or 93p, a 32% premium to its closing price on Wednesday (17 April), and 2.8% above the recent Shot Tower valuation report..
James Carthew, head of investment company research at QuotedData, said it is possible the deal could kick-start a bidding war, while manager Hipgnosis Song Management may find a way to exercise its pre-emption right to buy the portfolio at the same price.
“The drama may not be over yet but it does feel like we are in the final Act,” he said.
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