Blackstone to increase Hipgnosis offer

(Sharecast News) - US private equity firm Blackstone will up its bid for embattled music rights publisher Hipgnosis as it looks to change its takeover offer to a so-called 'scheme of arrangement', according to sources at the Financial Times. Under a scheme of arrangement, the deal will require approval from 75% of Hipgnosis' voting shareholders before becoming binding across all investors, regardless of how they voted. This will allow Blackstone to seize full control of Hipgnosis without needing to "squeeze out" dissenting shareholders under a formal takeover offer.

However, Blackstone will essentially need to lodge a new form of offer for Hipgnosis just weeks after beating out rival Concord's bid and securing backing from its board. Its new offer will also need approval from the UK Takeover Panel.

Blackstone will hike its offer to $1.31 per share, an increase of a single cent from its previous offer, valuing Hipgnosi at almost $1.6bn and representing a 17% premium to its adjusted net asset value.

According to the FT, the deal should proceed smoothly once the scheme of arrangement has been secured, with the deal's announcement potentially coming as soon as Monday.

As of 0915 BST, Hipgnosis shares were up 0.82% at 101.42p.











Reporting by Iain Gilbert at Sharecast.com