Blackstone offers one extra cent to buy Hipgnosis as takeover nears
The two businesses had previously agreed to a deal that will see Hipgnosis taken off the public markets.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Blackstone has upped its bid for Hipgnosis Songs Fund by one cent as it gets closer to snapping up the music rights owner of artists from Beyonce to Blondie.
The two businesses had previously agreed to a deal that will see Hipgnosis taken off the public markets.
On Monday Blackstone, a US private equity firm, said it had revised its offer price after discussions with the Hipgnosis board.
It has risen by one US cent per share (0.79p), valuing Hipgnosis at about 1.58 billion US dollars (£1.27 billion), an almost 50% premium on the closing price of Hipgnosis shares before an offer was made.
It also revealed that the firms had agreed to switch the nature of the deal from a takeover to a “scheme of arrangement”.
It means that the deal needs to get the approval of shareholders in Hipgnosis who hold at least 75% of its shares, and then the takeover can go ahead regardless of whether a shareholder voted in favour or not.
Blackstone it said it had gained the approval of the UK Panel on Takeovers and Mergers to switch to a scheme of arrangement.
It sets the stage for Blackstone to buy all the shares in the music rights giant, which became at the centre of a bidding battle in April.
The tussle between Blackstone and Apollo-backed Concord helped push up Hipgnosis’ share price by about 50% since it kicked off in mid-April.
Concord was outbid by its rival after sticking to a final offer which valued Hipgnosis at 1.51 billion US dollars.