Hipgnosis Songs shareholders almost universally backed the board’s proposal to offer a £20m payment to prospective bidders for the company’s assets.
In a move to entice buyers, the proposal seeks to provide protection to prospective bidders who receive a board recommendation against their due diligence and acquisition costs.
At an extraordinary general meeting (EGM) held this morning (7 February), 99.9% of shareholders voted in favour of the proposal.
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Robert Naylor, chair of Hipgnosis Songs Fund, said: “The board would like to thank shareholders for their continuing support, as evidenced by 99.9% of votes cast in favour of the amendment to the articles.
“The board remains focused on the strategic review, under which it is looking at all options to deliver shareholder value. The board will update shareholders as to the outcome of due diligence in due course.”
Last year, Hipgnosis shareholders rejected the proposed sale of 29 music catalogues for $440m (£346m) to a Blackstone-backed private equity vehicle.
The trust’s board has been engaged in a row with its investment adviser, Hipgnosis Songs Management, over a ‘call option’ in its advisory agreement, which allows HSM to purchase the trust’s portfolio if its position as investment adviser is terminated.
On Monday, Hipgnosis Songs announced that it intends to seek indemnity from Merck Mercuriadis and HSM over legal claims from its founder’s former business.
Mercuriadis stood down as chief executive of HSM on Friday (2 February), instead being named chair.
See also: Hipgnosis Songs Management refuses to scrap call option as row continues
