LONDON, April 18 — Beleaguered UK music rights owner Hipgnosis Songs Fund, whose catalogue includes Justin Bieber, Shakira and Neil Young, today accepted a US$1.4-billion (RM6.6 billion) takeover from US rival Concord.

HSF and Concord "have reached agreement on the terms of a recommended cash offer”, the pair said in a statement.

The offer was a 32-per cent premium on yesterday’s closing share price.

In reaction, HSF shares surged 30 per cent today.

The London-listed fund, which has been plagued by concerns over asset valuations, recently slashed the value of its songs catalogue by more than a quarter to US$1.93 billion.

That came after HSF revealed in December that its first-half net losses tripled on tumbling sales.

Hipgnosis — co-founded in 2018 by legendary guitarist and producer Nile Rodgers and Merck Mercuriadis, the former manager of Beyonce and Elton John — manages the rights to more than 150 of the world’s biggest song catalogues.

"After much hype led to great disappointment, soundtracked by questionable corporate governance, Hipgnosis Songs Fund is now the recipient of a takeover bid from Concord,” said Russ Mould, investment director at AJ Bell.

"This might be the final chapter in the trust’s life as a listed entity, one that’s been filled with many dud notes.” — AFP