By Ian Walker
Hipgnosis Songs Fund said that shareholders rejected the proposal for the planned sale of 29 music catalogs to Hipgnosis Songs Capital and that the deal therefore won’t proceed.
The London-listed music investor, which announced the sale plan last month, also said Thursday that the resolution that sought the continuation of Hipgnosis as a closed-ended investment company was rejected by shareholders.
The board will, therefore, put forward a proposal for the reconstruction, reorganization or winding-up of the company within the next six months, it said.
“These proposals may or may not involve winding-up the company or liquidating all or part of the company’s existing portfolio of investments,” Hipgnosis said.
The company said on Sept. 14 that it was planning to sell 29 catalogs to Hipgnosis Songs Capital for $440 million and a portfolio of non-core songs for $25 million to fund a share-buyback program and reduce debt, as part of a plan to boost its share price.
Shares at 1101 GMT were up 2.30 pence, or 3.1%, at 77.30 pence.
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