Hipgnosis Songs Fund, a London-listed music investor, has announced plans to sell 29 catalogues and a portfolio of non-core songs for $465 million. The funds will be used to support a share buyback program and reduce debt, with the aim of boosting the company’s share price.
The proposed buyback program involves the repurchase of up to $180 million worth of shares, paired with the repayment of $250 million drawn from the company’s revolving credit facility. These plans are subject to approval by shareholders at a general meeting scheduled for Oct. 25.
Hipgnosis Songs Capital, a partnership between Hipgnosis Song Management and funds managed/advised by Blackstone, will be purchasing the catalogues and non-core songs.
Chairman Andrew Sutch expressed the board’s belief that the current share price undervalues the company’s portfolio. After extensive consultation with major shareholders and careful consideration of various options, these proposals have been designed to provide immediate shareholder value while ensuring superior returns over the medium term.
At 0701 GMT, shares were up 6.0 pence, or 6.45%, at 99.0 pence.
