Concord has made a bid for the catalogue of rights owned by the Round Hill Music Royalty Fund, the UK-listed fund set up and managed by Round Hill Music.
The proposed deal, valued at around $468.8 million, would see Concord acquire the rights in songs by artists including Alice In Chains, Bonnie Tyler, Bush, Bruno Mars, Celine Dion, Lady A, Louis Armstrong, The Offspring, Carrie Underwood, The Supremes, Wilson Pickett and Whitesnake.
The Round Hill Music Royalty Fund board is recommending the cash offer to its shareholders, who will vote on the proposals at the fund's next general meeting next month. In a statement this morning they set out why they believe Concord's bid is a good deal.
Confirming the board's support, RHM Chairman Robert Naylor, adds: "The board is pleased to present this opportunity for liquidity at a premium to both the share price and the initial public offering price, as well as at a narrow discount to economic net asset value per share. The recommended offer represents excellent value for shareholders".
Meanwhile, in a statement on the deal, Concord CEO Bob Valentine says: “Since its IPO, RHM has built an impressive portfolio of music rights which generate revenue across a variety of income streams and have demonstrated their ability to stand the test of time".
"As one of the world's leading music companies with a proven track record of strategic catalogue expansion, Concord has a global team of sync, licensing, marketing, copyright and royalty experts well positioned to maximise the value of this portfolio for all of the songwriters and artists within it".
"This offer enables RHM shareholders to realise their investment in the business at an attractive premium to the undisturbed share price", he concludes, "while the transaction provides an opportunity to create value for all stakeholders".
