Investment adviser’s refusal raises concerns for potential buyers
- Hipgnosis Songs Fund’s request to remove call option from investment advisory agreement declined
- Call option gives adviser right to buy portfolio at certain time and price
- Proposal to remove call option aims to attract potential buyers
- Strategic review ongoing for future of the company
- Investigation into potential cherry-picking of catalogues for sale
Hipgnosis Songs Fund has been denied its request to remove the call option from its investment advisory agreement by Blackstone-backed investment adviser Hipgnosis Songs Management. The call option grants the adviser the right to purchase the portfolio at a predetermined time and price. The fund proposed the removal of the call option to ensure that potential buyers are not discouraged from bidding, as it believes this is in the best interest of shareholders. The fund’s recently formed board is currently conducting a strategic review and exploring all options for the company’s future. Additionally, the board is investigating whether the 29 catalogues proposed for sale were selectively chosen for their higher growth rates, potentially without proper disclosure to the previous board. Hipgnosis Songs Fund shares were down 0.3% at 72.00 pence as of 0919 GMT.
Public Companies: Hipgnosis Songs Fund (N/A), Hipgnosis Songs Management (N/A), Blackstone (N/A), Hipgnosis Songs Capital (N/A)
Private Companies:
Key People:
Factuality Level: 7
Justification: The article provides information about the request by Hipgnosis Songs Fund to have the call option removed from its investment advisory agreement, and the decline of the request by Hipgnosis Songs Management. It also mentions the reasons for the proposal and the ongoing strategic review of the company. The article includes statements from both Hipgnosis Songs Fund and Hipgnosis Songs Management, but there is no response from the latter. The article also mentions the previous vote against a sale of music catalogues and the investigation by the board into the proposed sale. Overall, the article provides factual information about the events and statements, but it lacks some details and perspectives from all parties involved.
Noise Level: 3
Justification: The article provides a brief update on the request by Hipgnosis Songs Fund to have the call option removed from its investment advisory agreement. It mentions the reasons for the request and the response from Hipgnosis Songs Management. It also includes information about the strategic review of the company and the previous vote against a sale of music catalogues. However, the article lacks in-depth analysis, evidence, and actionable insights. It mainly focuses on reporting the facts without providing much context or critical analysis.
Financial Relevance: Yes
Financial Markets Impacted: The article pertains to the financial markets as it discusses the investment advisory agreement between Hipgnosis Songs Fund and Hipgnosis Songs Management, both of which are involved in the music catalog industry.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article primarily focuses on the investment advisory agreement and the strategic review of Hipgnosis Songs Fund. There is no mention of any extreme events or their impact.
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