Hipgnosis delays results on valuation concerns

(Sharecast News) - Music rights investor Hipgnosis Songs Fund has delayed publication of its interim results - which were due on Tuesday - after the board expressed concerns about the value of the company's assets.

Hipgnosis said an independent valuation was "materially higher than the valuation implied by proposed and recent transactions in the sector".

It highlighted the proposed sale of assets to Hipgnosis Songs Capital for $417.5m, reflecting a discount of 24.3% to the valuation at the end of March, and the recent sale of non-core assets of $23.1m at a 14.2% discount.

The board sought advice on the independent valuation from its investment advisor Hipgnosis Song Management, which is majority owned by Blackstone.

"Hipgnosis Song Management Limited 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," Hipgnosis Songs Fund said.

The company expects to publish the interim results by 31 December 2023."

Reporting by Frank Prenesti for Sharecast.com