(Alliance News) - Hipgnosis Songs Fund Ltd on Wednesday said it has invested 82% of the net proceeds from its C share fundraising in July.
As a result, the FTSE 250-listed investment company said it intends to convert the C shares into ordinary shares
Hipgnosis also announced an increase in its target dividend by 5.0% to 5.25 pence per share per year from 5.00p. The company said it will target the payment of four equal quarterly dividends of 1.3125p, commencing from the period from July 1 to the end of September, which is expected to be declared in October.
This reflects the company's, and the investment adviser's, confidence in the uncorrelated and reliable nature of songs' income during the global Covid-19 crisis as well as the growth in global recorded music revenue driven by streaming, Hipgnosis said.
"It's been a long summer focused on acquisitions and active management, but I'm delighted with our progress," said Founder Merck Mercuriadis.
Hipgnosis shares were trading flat in London on Wednesday at 122.00p each.
By Evelina Grecenko; email@example.com
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