(Reuters) – Hipgnosis Songs Fund on Thursday reported a fall in its assets value at the end of the first half of the year, as the struggling firm battles a tough phase marred by operational challenges and shareholder outcry.
The London-listed fund, which is undertaking a strategic review after its shareholders in October voted against its current structure and plans to sell a chunk of its music catalogues, said its operative net assets value per share stood at $1.7392 as of Sept.
30, down 9.2% from the March-end.
Shareholders in the UK-listed music rights owner in October voted against its attempt to secure a further five-year mandate, forcing the board to put forward proposals within six months, with a failure to reach an agreement potentially leading to a wind-up.
Chairman Robert Naylor, who took charge last month, urged investment adviser Hipgnosis Song Management on Thursday to provide the board with its opinion on the fair value of the company’s assets without caveats, to give “greater certainty and transparency to our shareholders”.
The music investor published its half-yearly results after a two-day delay, as the valuation it received from an independent valuer was higher than what was implied by proposed and recent transactions in the sector.
Analysts had termed the delay as an “early blow” to the credibility of the new board and also of the independent valuer, Citrin Cooperman.
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Subhranshu Sahu)
