Hipgnosis has signed off on a £1.1bn takeover deal from US-based rival, Concord Chorus.

The British music royalties investment fund, which gives investors the opportunity to make money from the royalties of songs by acts such as Beyonce and Neil Young, has recently had issues in regard to its structure and leadership.

In order to tackle this, Hipgnosis announced a strategic review to assess its business options, outlining a potential sale after shareholders fought back over a planned catalogue sale.

The firm said the acquisition “represents an attractive opportunity” for shareholders, with the deal representing a 32% premium on the closing share price.

Chairman at Hipgnosis, Robert Naylor, said: "The board is confident that Concord, one of the world's leading independent music companies, is the right owner to take on the Hipgnosis catalogue and manage it in the interests of composers and performers.

"We would now encourage Hipgnosis Song Management (HSM), the company's investment adviser and Blackstone, which is HSM's majority owner, through funds they manage and advise, to agree an orderly termination of the investment advisory agreement. This would enable the payment of a larger consideration under the agreed transaction with Concord and bring to an end a period of uncertainty for all Hipgnosis stakeholders."

The acquisition is the latest deal completed by Nashville-based Concord Chorus, having acquired Round Hill Royalty Fund last year.

Concord owns or administers around one million copyrighted works from musical artists, including Phil Collins and Leonard Bernstein.

However, Hipgnosis’ plans to delist shares from the London Stock Exchange, which some analysts believe could bring anxiety to investors.

Investment director at AJ Bell, Russ Mould, added: "An end is in sight for one of the most chaotic events to unfold in the world of investment trusts for years. After much hype led to great disappointment, soundtracked by questionable corporate governance, Hipgnosis Songs Fund is now the recipient of a takeover bid from Concord. This might be the final chapter in the trust’s life as a listed entity, one that’s been filled with many dud notes."

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