Shares within the troubled UK music investor Hipgnosis Songs Fund hit a file low on Monday after the worth of its portfolio was minimize and mentioned it had halted investor payouts “for the foreseeable future”.
The FTSE 250 agency mentioned {that a} evaluation had estimated the honest worth of its catalogue, together with rights to the work of Shakira, Blondie and Red Hot Chili Peppers, at between £1.8bn to only over £2bn.
The sums contained within the report, carried out by its lead adviser Shot Tower, have been down by a minimum of a fifth on the worth Hipgnosis had reported final September.
Hipgnosis has been mired by troubles since mid final yr, together with valuation considerations, board and authorized battles, and a shareholder revolt in opposition to a listing sale deal that compelled a strategic evaluation.
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The firm had mentioned in December it will droop dividends for a minimum of the rest of the monetary yr to the top of March.
It confirmed on Monday that the pause would proceed.
About 65% of the corporate’s royalties are at present generated from passive publishing, efficiency and recorded music revenue streams.
That determine is anticipated to lower to between 40% and 45% over time, Shot Tower’s report mentioned, as extra management rights return to the corporate upon the expiration of pre-acquisition publishing agreements.
Shares have been buying and selling 14% down at 56p within the wake of the replace.
Source: information.sky.com”