Blackstone outbids Concord for Hipgnosis

Blackstone Inc., a private equity firm, has put forth a new $1.5 billion proposal to acquire Hipgnosis Songs Fund Ltd., surpassing Concord’s previous bid, Bloomerg reported on Sunday.

Blackstone’s improved offer of $1.24 per share in cash represents a 7 per cent increase over Concord’s bid. Blackstone urges Hipgnosis’ board to recognise the enhanced value and work towards a mutually recommended deal promptly. Hipgnosis intends to recommend Blackstone’s proposal if it’s made official and grants Blackstone due diligence access.

Notably, Blackstone’s prior offers were lower, but its latest offer, advised by Jefferies, is around 100 pence per share.

Hipgnosis’ board had previously agreed to a deal with Concord but currently supports Concord’s offer due to uncertainty regarding Blackstone’s firm offer.

This deal follows a period of turmoil for Hipgnosis after a review found its assets were worth less than initially reported, with Blackstone having a stake in Hipgnosis Song Management.