Concord has officially withdrawn from the bidding war for the assets of the Hipgnosis Songs Fund.
The news was announced in a statement to the market on Thursday (May 16), following Concord’s first statement on May 9 that it would not increase its takeover bid for HSF – leaving the global investment giant black stone As the frontrunner in HSF’s high-stakes takeover battle.
The bidding war for HSF began in mid-April when Concord launched a bid through Concord Chorus Ltd $1.4 billion Or $1.16 per share. The initial takeover bid is partly funded by Apollo Global Management and is intended to secure all HSF’s assets.
black stone Then submit a counteroffer – with US$1.5 billion proposed on April 20, or $1.24 per share.
Concord responded by raising its offer to US$1.511 billionor $1.25 per share, just four days later.
The bidding war continued after Blackstone returned with a revised offer on April 29. $1.572 billionor $1.30 per share.
However, Concord issued an announcement on May 9 stating that it was withdrawing from the competition.
An announcement on May 9 said: “Concord Bidco confirms its offer $1.25 Each Hipgnosis share is final and will not increase.
Most recently, Concord confirmed in a statement today (May 16) that he has officially withdrawn from the race.
Concord’s statement today contains this update: “This announcement confirms that Hipgnosis has agreed with the Acquisitions and Mergers Panel (the “Group”) to exempt Bidco from its obligations under the City’s Acquisitions and Mergers Code (the “Code”). Proceed with the proposed offer. As a result, Bidco confirms that it will not proceed with the offer.
The statement added that the acquisitions and mergers group had “agreed to withdraw” Concord’s takeover bid for HSF, confirming to Concord and Hipgnosis:
“(i) Bidco ceases to be under any obligation to continue the offer under Rule 2.7(b) and Rule 24.1 of the Code; and
“(ii) Bidco is subject to the restrictions set out in Rule 35.1 of the Code and is prohibited from making, among other things, any offer for Hipgnosis for a period of 12 months from the date of this announcement. However, in the circumstances set out in Note 1 to Rule 35.1, Bidco reserves the right to remove the restrictions set out in Rule 35.1 of the Code, subject to the agreement of the Panel.
harmony The reason for withdrawing from the HSF completion plan has not been disclosed.
Its final offer included a clause that it would resell it if it won the takeover battle. 30% HSF catalog within 24 months of acquisition.
April 29, Hipgnosis Song Fund The Board of Directors recommends Blackstone’s latest (US$1.572 billion) Make an offer to HSF shareholders while withdrawing its previous proposal to make a $1.25 per share offer to Concord.
within consideration HSF debt, Blackstone’s latest offer values the company at Dollar $2.2 billionhigher than Shot Tower Capital’s most recent valuation, which midpoint was $1.95 billion (Based on HSF’s performance as of end-September 2023).
black stone It was recently confirmed that the company plans to “further develop the potential of the Hipgnosis product portfolio” following the acquisition.
This may involve merging HSF with Blackstone’s existing music assets, most likely its private Hipgnosis Songs Capital (HSC) fund.
In addition, Blackstone also stated that it may sell or reorganize Hipgnosis Songs Group LLC (HSF’s U.S. song management business) within six to nine months after acquiring HSF.
Blackstone also gave a vote of confidence in Hipgnosis Song Management (HSM), the investment adviser to HSF and HSC and jointly owned by Blackstone and Merck Mercuariadis.
Blackstone said last month: “[Blackstone’s Bidco] Highly values the skills and experience of HSM management and employees and recognizes their contribution to Hipgnosis product portfolio and business development. Accordingly, it is expected that HSM will continue to be involved in the management of assets owned by Hipgnosis.
The Blackstone website reported that as of March 31, the company managed $1.1 trillion in assets across various industries. The private equity firm seeks to complete the acquisition of HSF in the third quarter of 2024.
HSF has accumulated the following product portfolio 138 Table of Contents Contains rights exceeding 40,000 songs.
global music business
