Global investment giant Blackstone said on Monday it would pay a penny more to take over Hipgnosis Songs Fund (HSF), the London-listed company that owns the catalog of Red Hot Chili Peppers, because in a revised takeover plan unveiled on Monday pays less than consulting fees.
In a joint statement, the boards of directors of Blackstone and HSF said they approved the offer by paying $1.31 per share, which brings the total value of the listed arm of the music investment firm to about $1.584 billion.
While Blackstone beat rival Concord to be in the lead to take the privately held HSF's 65,000-song portfolio, it raised its bid from the $1.57 billion it offered on April 29 as it still needs to secure enough shares who voted in her favor to buy the company.
Blackstone said the revised, higher bid came about in part because Hipgnosis had “lower advisory fees in connection with the transaction than previously anticipated.”
The revised plan – officially called a scheme – must receive the support of 75% of shares voted either in person by investors or by proxy at a court meeting. After this vote at the court meeting, the plan must also receive a majority of the shares voted in its favor at a general meeting. Blackstone and HSF's board will release meeting dates and additional information about the new acquisition plan by June 14. The acquisition is expected to close in the third quarter, according to the filing.
With the support of HSF board members and some other shareholders, Blackstone has committed to vote in favor of its offer of 0.03% of the shares.
The new plan also includes a revision of what it says is an A&R cooperation agreement that states the companies have agreed to cooperate “on certain matters related to obtaining regulatory approvals in connection with the Acquisition.”
Board representatives for HSF and Blackstone did not immediately respond to requests for comment.
