Rathbones cashes in on Hipgnosis bidding war as it sells almost entire stake
A major shareholder has sold almost its entire stake in Hipgnosis Songs Fund after its shares spiked following a bidding war.
Wealth and investment management firm Rathbones has reduced its stake in the London-listed company from just over nine per cent to less than one per cent, according to a new filing.
The move comes after shares in Hipgnosis Songs Fund surged from 70.5p on April 16 to now trading at around 104p following a takeover battle for the company.
On April 29, the firm’s board recommended a cash acquisition by American private equity giant Blackstone.
Blackstone’s $1.30 (£1.04) in cash per share bid, which is higher than the $1.25 (£1.00) per share revised offer that came from Concord Music in the previous week, valued Hipgnosis at about $1.57bn (£1.25bn).
The bidding war between Concord, which is backed by Apollo Global Management, and Blackstone had gripped London-listed Hipgnosis over the last fortnight.
In a statement released on April 29, Hipgnosis chair Robert Naylor said: “The board is pleased to unanimously recommend this US$1.6bn offer for Hipgnosis from Blackstone.
“Since we started our strategic review, we have been clearly focused on looking at all the options to deliver shareholder value.
“We are delighted that, following competitive interests in acquiring Hipgnosis, our investors now have a chance to immediately realise their holding at an increased premium.”
Rathbones completed a £839m deal to buy Investec’s wealth arm in September 2023.