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(Alliance News) - Hipgnosis Songs Fund Ltd said Friday its operating net asset value dropped in the second half of its financial year so far, affecting the conversion ratio between the company's ordinary shares and C shares.
As at January 10, the music rights investor said its operative net asset value per ordinary share dropped to 102.16 pence from 108.46p at the end of September, due to the strengthening of the pound sterling to US dollar exchange rate by 7.5%.
Meanwhile, Hipgnosis's net asset value per C share increase by 2.1% to 100.08p from 98.00p at its admission on October 22.
In mid-January, Hipgnosis said it had invested GBP214 million of the proceeds from its C share fundraising undertaken in October, which raised GBP231 million in total.
Following this, the company said it would convert the C shares into ordinary shares, with the conversion ratio based on the net asset value of both share classes on January 10.
As a result of the NAV, Hipgnosis has calculated the conversion ratio at 0.9796 ordinary shares for each C share. On this basis, shareholders will receive 979 new ordinary shares for every 1,000 C shares held.
Hipgnosis will issue 226.3 million ordinary shares for the conversion, which will bring its total issued share capital to 615.9 million shares overall.
Shares in Hipgnosis Songs Fund were down 3.1% at 104.68 pence on Friday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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