Hipgnosis Songs has delayed the publication of its interim half-year results, which were due to be released today (19 December), after its independent valuer assessed its portfolio to be worth more than recent proposed transactions.
In a stock exchange announcement this morning (19 December), the trust’s board said the independent valuer had appraised the trust’s portfolio at a ‘materially higher’ rate than implied by recent deals in the sector, in particular the proposed sale of 20% of the trust’s assets for $417.5m (£328.8m) to private equity vehicle Hipgnosis Songs Capital.
The deal, which was ultimately rejected by shareholders, reflected a discount of 24.3% to the valuation of the assets at 31 March.
The trust announced last week (11 December) that it had sold 20,000 songs from its portfolio for $23.1m, representing a 14% discount to valuation.
The board added it had sought an opinion from investment adviser Hipgnosis Song Management on the independent valuer’s valuation.
It said: “Hipgnosis Song Management eventually provided an opinion, which was heavily caveated, such that the board has concerns as to the valuation of the company’s assets in its interim results.”
It expects to publish its results by the end of 2023.