Paul Burger and Andrew Wilkinson resign as Hipgnosis Songs Fund non-exec directors ahead of tomorrow’s continuation vote

Tomorrow (October 26) is a giant day for UK-listed Hipgnosis Songs Fund.

HSF’s shareholders will tomorrow morning (London time) vote on whether or not to maintain the fund persevering with in its current kind through a so-called ‘continuation vote’.

(The continuation vote, which has been scheduled to happen this month since 2018 – i.e. 5 years since HSF’s IPO – is a authorized requirement for funding trusts in London, according to the FT.)

As well as, HSF shareholders are set to vote tomorrow on whether or not to simply accept a $440 million provide made by Blackstone-backed Hipgnosis Songs Capital to amass 29 catalogs from HSF.

Earlier than all of that performs out, HSF has in the present day (October 25) despatched out a be aware to traders confirming that two of the corporate’s non-exec administrators have resigned.

Andrew Wilkinson and Paul Burger have each stepped down from their non-exec roles on the firm.

The information comes after HSF confirmed last month that the Chairman of its present board, Andrew Sutch, is to step down from his function, and {that a} course of had begun to seek out his substitute.

Sutch stated in the present day: “On behalf of the Board, I want to thank Andrew and Paul for his or her dedication and essential contribution to the Firm over the previous 5 years.”

The resignation of Wilkinson and Burger negates the necessity for a shareholder vote on whether or not they need to each keep of their present non-exec roles – one thing that was additionally beforehand set for tomorrow.

In keeping with the FT, Sutch, Wilkinson, and Burger were expected to “face opposition from shareholders on the firm’s annual shareholder assembly”.

Whispers are rising louder that there’s an inexpensive probability that Hipgnosis Songs Fund shareholders will vote in opposition to continuation tomorrow – although it’s not but a foregone conclusion.

If ‘discontinuation’ occurs, it should depart the way in which clear for a six-month interval during which invested events will resolve on a brand new path ahead for HSF and its portfolio.

One most well-liked final result of some shareholders, we hear, could be a model new board to take over the operating of HSF.

Value remembering: HSF’s present funding adviser, Hipgnosis Track Administration – led by Merck Mercuriadis – has a “call option” which means it will possibly purchase the portfolio of HSF at a pre-agreed value in case of HSM’s termination.

Along with HSF, HSM is the funding adviser for the Blackstone-backed Hipgnosis Songs Capital, a personal fund.Music Enterprise Worldwide