LONDON (Reuters) – Shares in Round Hill Music Royalty Fund, which owns the copyrights to work of major artists such as the Beatles, soared as much as 67% on Friday after a $496 million buyout offer from Alchemy Copyrights.
Shares in Round Hill Music were up 64% at $1.125 by 0753 GMT, having hit a record $1.15 earlier on.
In a note, Jefferies said it expects Alchemy’s offer is “highly likely to be successful” despite coming at a discount to net asset value.
Shareholders in Round Hill Music will get $1.15 in cash per share, a discount of approximately 11.5% to RHM’s NAV per share of $1.30 as of September 8.
Shares in rival Hipgnosis Songs Fund, which owns the copyright to work by the likes of Shakira and Neil Young, jumped as much as 16.5% to the top of the FTSE 350 and are on track for their biggest daily rise ever on a positive read-across, according to Jefferies.
Jefferies said Hipgnosis “trades on a similar discount, but is a larger vehicle, with arguably a more iconic music portfolio.”
(Reporting by Lucy Raitano; Editing by Amanda Cooper)