Investors call on Hipgnosis to sell songs as share price dwindles
Investors in Hipgnosis Song Management, which owns songs by Rihanna, Nirvana and Justin Bieber, have called on the company to sell some of its holdings as the firm’s share price flounders.
Hipgnosis’ share price – which trades as Hipgnosis Songs Fund on the FTSE 250 – has fallen around 30 per cent over the last year. At the time of reporting, shares were trading at around 76p.
“The big thing to get the share price moving would be to dispose of less attractive catalogues in the portfolio and give a meaningful return to shareholders,” CCLA’s Solomon Nevins, one of the investors, told the Financial Times.
“Where the shares are trading today, there must be something in the portfolio that makes sense selling, to buy shares back,” he added.
This approach could potentially offer an escape route for Hipgnosis, which has been grappling with obstacles in expanding its holdings due to the constricting effect of its declining share price on fundraising efforts.
The calls come as the firm prepares to announce its financial results tomorrow.
Hipgnosis declined to comment.