Blackstone has fought back in the bidding war for music rights trust Hipgnosis Songs by tabling a $1.57bn (£1.26bn) cash offer.
The latest offer from Lyra Bidco, a newly-formed company indirectly wholly-owned by Blackstone, will see shareholders receive $1.30 (£1.04) per share if approved.
It comes at a 4% premium to Concord’s $1.51bn offer last Thursday (25 April), and a 48.1% premium to Hipgnosis’s 71p per share closing price on 17 April.
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As a result, the Hipgnosis board has withdrawn its recommendation of the Concord offer, instead urging shareholders to accept the Blackstone offer.
Robert Naylor, the chair of Hipgnosis, said: “The board is pleased to unanimously recommend this $1.6bn offer for Hipgnosis from Blackstone. Since we started our strategic review, we have been clearly focused on looking at all the options to deliver shareholder value.
“We are delighted that, following competitive interests in acquiring Hipgnosis, our investors now have a chance to immediately realise their holding at an increased premium.”
Qasim Abbas, senior managing director of Blackstone, added: “Our offer price, which has been unanimously recommended by the board, represents a significant premium to the unaffected share price and allows shareholders to realise immediate and attractive value for their shareholding.
“The offer is the result of extensive discussion and negotiations with the board and provides shareholders the certainty of cash today.”
