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Round Hill Music Royalty Fund Ltd on Friday revealed it has agreed to a cash takeover offer with Alchemy Copyrights, giving the fund a valuation of $468.8 million. The offer of $1.15 per share represents a 67% premium to RHM’s closing price on Thursday. On Friday morning, its shares had surged 60% to $1.10 in London. RHM is a private equity firm exclusively dedicated to investments in revenue-generating music copyright assets. Since listing in London three years ago, it has invested in music rights comprising 51 catalogues, with over 150,000 songs. Its strategy is to carefully select ‘evergreen’ music rights to generate resilient income, with a portfolio including songs from Celine Dion, James Brown, Bonnie Tyler, Phil Collins, Back Street Boys and Louis Armstrong. Los Angeles-based Alchemy trades as Concord, and has been acquiring music rights and companies for over ten years. It has deployed over $2.0 billion of capital and completed over 100 transactions in recorded music, music publishing and theatricals. ‘Concord and its management have followed the progression of RHM since [its initial public offering] and believe that RHM’s assets complement Concord’s long-standing objective to acquire high quality and long-term music assets,’ the companies explained. The directors of RHM unanimously recommend that shareholders vote in favour of the offer and scheme at forthcoming court and general meetings. Concord has already received acceptances and irrevocable undertakings for around 33% of RHM shares, and will need 75% of shareholders to approve the takeover. RHM first listed in London in November 2020 at $1.00, with a market cap of $282.0 million. However, since last summer, its shares have traded below its listing price. ‘The board is pleased to present this opportunity for liquidity at a premium to both the share price and the IPO price, as well as at a narrow discount to economic net asset value per share. The recommended offer represents excellent value for shareholders,’ said RHM Chair Robert Naylor. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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