Hipgnosis shareholders vote against $440m catalogue sale

(Sharecast News) - Shareholders of music rights owner Hipgnosis have voted against the company's planned $440m sale of a music catalogue to a group backed by private equity firm Blackstone. At an annual meeting earlier on Thursday, shareholders also voted to against a Continuation Resolution - meaning the fund could be wound up - and against the re-election of chairman Andrew Sutch.

As the Continuation Resolution was not passed, the board will put forward proposals for the reconstruction, reorganisation or winding-up of the company to shareholders for their approval within six months.

"These proposals may or may not involve winding-up the company or liquidating all or part of the company's existing portfolio of investments," it said.

Senior independent director Sylvia Coleman said: "The board and the investment adviser have each engaged widely with investors over recent months. While shareholders have not supported our proposed transaction or the continuation vote, it is clear that they share our belief in the inherent quality and potential of these assets.

"The directors are now expediting the appointment of a new chair who will drive the strategic review we have already announced, with a clear focus on delivering improved shareholder value."