LONDON – Music rights giant Hipgnosis Songs Fund Ltd. announced on Monday that it will support a revised $1.6 billion bid from Blackstone Inc., as the private equity heavyweight restructures its offer to facilitate a full takeover of the company.
Blackstone’s new offer of $1.31 per share, up one cent from the initial $1.30 per share bid made in April, raises the music royalties business’s valuation from $1.572 billion to $1.584 billion. This revised bid, made by Blackstone Europe LLP, signifies the latest development in a competitive bidding war for Hipgnosis, which holds publishing rights to songs by artists including Shakira and Lady Gaga.
Hipgnosis $1.6 Billion Blackstone Bid
In a strategic move to ease the acquisition process, Blackstone announced it would shift its April takeover offer to a scheme of arrangement. This legal maneuver allows the bidder to acquire 100% of the target company’s shares if at least 75% of shareholders vote in favor of the deal, contrasting with the 90% acceptance threshold required in a straight takeover offer to force a buyout of remaining shares.
