Round Hill Music shareholders approve $469m sale to Concord
Shareholders of London-listed Round Hill Music Royalty Fund (RHM) have overwhelmingly voted in approval voiced of the proposed $468.8m (£385.9m) sale to Alchemy Copyrights, which trades as Concord.
Around 69 per cent of the fund’s total eligible shareholders voted, with 99 per cent in favour of the takeover.
Last month, music rights buyer Concord struck a deal to snap up the entirety of RHM should it secure the green light from RHM’s shareholders, offering to buy the US company for $469m. Now, the deal is secured.
RHM chairman Robert Naylor said: “The strength of support shown by shareholders in their vote for this transaction marks a resounding endorsement of the value that we have been able to deliver on their behalf since the IPO of the Round Hill Music Royalty Fund in November 2020.
“It reflects the quality of the management and the portfolio that the transaction has concluded so efficiently and with a counterparty of the calibre of Concord.”
In September, RHM said it had experienced a devaluation of the fund over the past year due to the inflationary and higher interest rate environment.
The board told investors that the acquisition gave them a chance to realise their shares’ value for cash at a “significant premium”, exceeding the highest trading price since RHM’s IPO in November 2020.
RHM, which floated on the London Stock Exchange in November 2020, owns 51 catalogues and over 150,000 songs including iconic tracks by The Beatles, Elvis Presley and the Goo Goo Dolls.
It comes as shareholders in rival listed songs fund Hipgnosis are also poised for a similar vote next week, addressing two issues: whether to continue the UK-listed company in its current form (the continuation vote) and whether to accept a proposed $465m sale of selected assets.