Hipgnosis Songs Fund is selling some of its catalogues, including hits by pop star Shakira and rapper Nelly, for £370million.
The company said the cash raised in the deal with Blackstone would be used to fund a share buy-back, pay debts and bolster its stock price.
Shares rose more than 6 per cent in early trading to a near oneyear high but closed down 6.5 per cent, or 6p, at 87p.
Rewind: Hits by Colombian Shakira (pictured) were among songs offloaded by Hipgnosis Songs Fund
The sale includes a portfolio of 29 music catalogues and a collection of songs to a partnership between its investment adviser and funds advised by the US private equity group.
Hipgnosis said in July it was considering a ‘strategic sale of catalogues of songs’ to boost its shares.
Merck Mercuriadis is chief executive and founder of the investment adviser Hipgnosis Song Management (HSM), and holds a minority interest in the buyer, Hipgnosis Songs Capital.
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