Private equity giant Blackstone has made an improved offer for Hipgnosis Songs Fund with a proposed $1.5bn deal to acquire the troubled music rights owner, topping a $1.4bn bid made last week by music rights investor Concord, according to a report by Bloomberg.
The report cites a statement by Blackstone as revealing that the firm’s fourth proposal to acquire Hipgnosis is worth $1.24 per share in cash, which is about 7% higher than Concord’s bid.
In the statement, Blackstone said: “Blackstone strongly encourages the board of Hipgnosis to recognise the significant increase in value available to all shareholders under the terms of its fourth proposal, over the $1.16 as set out in the Concord offer, and to work with Blackstone to reach agreement on a unanimously recommended firm offer in an expeditious manner.”
Having earlier agreed unanimously to a deal with Concord, Hipgnosis has indicated that its board now intends to recommend Blackstone’s proposal, should the private equity company announce a firm intention to make an offer, and that it is providing Blackstone access to conduct due diligence.
Blackstone had made prior offers for London-based Hipgnosis, which is backed by Apollo Global Management and holds ownership to song rights by artists including Blondie, the Red Hot Chilli Peppers and Neil Young.
