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Hipgnosis Songs Fund Ltd - London-based investor in music rights - Says 99.9% of shareholders vote in favour of a special resolution at its extraordinary general meeting. This was to enshrine payment of a fee, at the board's discretion, of up to GBP20 million to any prospective bidders who approach the board seeking to make an acquisition of Hipgnosis assets on terms recommendable to shareholders. The fee is intended to protect bidders against due diligence and acquisition costs so that they are "not deterred from seeking to engage with company" over a possible offer. Chair Robert Naylor says: "The board remains focused on the strategic review, under which it is looking at all options to deliver shareholder value. The board will update shareholders as to the outcome of due diligence in due course."
In December, Hipgnosis said the concern that bidders may be deterred was due to the call option over the fund's assets that is held by its investment adviser, Hipgnosis Song Management Ltd, giving the adviser the right to buy the fund's portfolio upon termination of its investment advisory agreement with the fund. On Monday this week, it appointed solicitors to review the claim made against its founder Merck Mercuriadis, Hipgnosis Songs Management and the company by Hipgnosis Music Ltd.
Current stock price: 65.29 pence, up 0.3%
12-month change: down 23%
By Greg Rosenvinge, Alliance News senior reporter
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