Hipgnosis Songs Fund Limited has announced a delay in the publication of its financial results for the six months ending September 30, 2023. The delay is due to a significant difference between the valuation of the company's assets provided by its independent valuer and the valuation implied by recent transactions in the sector. The proposed sale of assets to Hipgnosis Songs Capital for a net consideration of $417.5 million reflects a discount of 24.3% to the valuation of these assets as of March 31, 2023. Additionally, the recent sale of non-core assets for $23.1 million reflects a 14.2% discount to the valuation of these assets as of September 30, 2023.
The company sought advice from its investment adviser, Hipgnosis Song Management Limited, which is majority-owned by funds managed and/or advised by Blackstone, on their opinion of the independent valuer's valuation. However, the opinion provided by Hipgnosis Song Management Limited was heavily caveated, leading to concerns from the board regarding the valuation of the company's assets in its interim results.
The company now expects to publish its interim results by December 31, 2023. For further information, interested parties can contact Hipgnosis Songs Fund or Singer Capital Markets, the company's corporate broker. Headland Consultancy is the company's financial PR contact.