Hipgnosis Shareholders Reject Continuation and Mega Deals, Company's Future in Jeopardy
Shareholders of Hipgnosis Songs Fund have rejected a continuation vote and a plan to sell part of its music catalog to Blackstone-backed sister fund, Hipgnosis Songs Capital. The overwhelming rejection signals shareholder anger and initiates a 6-month countdown for the board to come up with a plan for the company's reconstruction, reorganization, or winding-up. The board's statement suggests the possibility of liquidating all or part of the company's existing portfolio of investments. The board will also need to appoint a new chair to lead the strategic review. Shareholders have expressed frustration with the fund's slow actions, undervalued assets, and the recent scrapping of a dividend payment. Merck Mercuriadis will continue as the fund's investment advisor.