(Alliance News) - Hipgnosis Songs Fund Ltd on Friday said it is contemplating an equity fundraise in order to fund additional investments.
The company, which is registered in Guernsey, said investment adviser The Family (Music) Ltd is still seeing "attractive pricing on catalogues of the finest quality" and is in active talks over a pipeline with an acquisition value exceeding GBP1 billion.
Songs and associated musical intellectual property rights investor Hipgnosis is considering "the most appropriate way of funding further investments" so as to deliver more value for shareholders.
Funding methods under consideration include the use of borrowings, as described in Hipgnosis's now-amended borrowing policy, as well as an equity fundraise.
The policy was amended following approval by a 98% majority at its general meeting on Thursday and permits Hipgnosis to incur indebtedness up to a maximum of 30% of its net asset value. The prior maximum having been 20% of NAV.
"A further announcement will follow in due course," said Hipgnosis.
Shares in Hipgnosis were up 1.1% at 111.73 pence in London in morning trading.
By Anna Farley; annafarley@alliancenews.com
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Hipgnosis Song. (SONG)
