Hipgnosis Shareholders Reportedly Planning to Block $440 Million Rights Deal

Last month, Hipgnosis' UK-listed Hipgnosis Songs Fund issued a proposal to shareholders to sell two portions of its song catalog, one of which it would sell to itelf. Unfortunately for Hipgnosis, its shareholders don't seem too fond of the idea.

What are they selling? The proposed sale was made in an effort to increase Hipgnosis' stock price and pay off debt. It included one package of assets consisting of 29 catalogs worth around $440 million that Blackstone-backed Hipgnosis Songs Capital had agreed to acquire along with a second package worth $25 million. An external buyer was expected to be found for that package.

What are they saying? A number of shareholders are reportedly preparing to block the sale, as they believe the price being offered by Blackstone is not high enough. "It's all about price — if it was 30 per cent higher, then it might make sense," one top 10 investor told the Financial Times. "We don’t really want to be parted from the assets."

The investor also said that shareholders weren't thrilled about about a perceived lack of transparency over the costs of the deal, its tax implications and the agreement that accrued income since the beginning of 2023 would go to Blackstone. Shareholders have yet to vote on the deal.