Music royalty investment trust Round Hill Music (RHM) has set out the terms for its proposed sale to US music rights firm Concord.
In a stock exchange announcement this morning (25 September), the RHM board unanimously urged shareholders to back the acquisition, saying the deal was in the best interests of investors.
On 8 September, the trust announced it had reached an agreement to be taken over by Concord in a $468.8m (£383.6m) deal.
If all goes to plan, the RHM board expects the acquisition to go through by 31 October 2023.
Completion will require shareholders to back the sale at a court meeting and a general meeting, both to be held on 18 October.
The offer of $1.15 per share came at a 67% premium to the $0.69 share price at close on 7 September and an 11.5% discount to the trust’s net asset value (NAV).
At the time of the original announcement, Stifel analysts said: “Given the frustration of shareholders at the persistent discount to NAV, we expect the offer to be widely accepted.
“We note that shareholders with 27.4% of share capital have already given irrevocables including Josh Gruss. In aggregate, if the deal is completed, shareholders since IPO will have generated a reasonable positive total return.”
Concord, which is the trading name for Alchemy Copyrights, has spent $2bn (£1.6bn) buying rights since 2015, and has completed over 100 deals.
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