Nile Rodgers of Stylish performs on stage at North Sea Jazz Pageant at Ahoy on July 14, 2018 in Rotterdam, Netherlands.
Dimitri Hakke | Getty Pictures Leisure | Getty Pictures
London-listed Hipgnosis Songs Fund, the music mental property funding firm based by Merck Mercuriadis and Nile Rodgers in 2018, introduced Thursday its board has beneficial a sale to music rights investor Harmony — valuing the agency at $1.4 billion.
Shares of the FTSE 250 constituent had been 31% larger at 8:30 a.m. U.Okay. time Thursday.
Hipgnosis snapped up music rights for high-profile artists together with the Purple Sizzling Chili Peppers, Beyoncé, Mark Ronson, Shakira, Neil Younger and Blondie, however has been mired in monetary reporting points, whereas its pre-tax working loss widened in 2023 to $86.63 million.
Hilgnosis Songs Fund share value.
The valuation is the equal of £0.932 ($1.16) per share, a 32.2% premium on Wednesday’s closing value. Financing for the deal will likely be supported by Harmony’s associate Apollo Capital Administration, the U.S. non-public fairness big.
In a launch, the businesses mentioned Harmony had a “confirmed observe file of strategic acquisitions and catalogue growth” and that the “creators related to the rights” would profit from the deal.
It additionally mentioned that to realize a “materials enchancment within the share value,” the corporate wanted “substantial monetary and governance modifications to enhance its monetary efficiency.”
