Concord Cadence agrees to takeover Round Hill Music Royalty for $468.8 million

Concord Cadence agrees to takeover Round Hill Music Royalty for $468.8 million

LONDON, UK: Concord Cadence Limited has agreed to takeover Round Hill Music Royalty Fund (RHM) at the rate of $1.15/share translating into $468.8 million.

Round Hill Music shareholders will receive the dividend of $0.01125 per RHM Share in respect of the quarter ended 30 June 2023 (as announced by RHM on 31 August 2023). In addition, RHM intends to declare a special dividend of $0.005 per RHM Share to be declared and paid prior to the effective date of the Scheme from income accrued by reference to the quarter ended 30 September 2023.

Concord Cadence has been an active acquirer of music rights and companies for over a decade, with a proven track record of strategic acquisitions and catalogue expansion.

Since 2015, Concord has deployed more than US$2.0 billion of capital and completed more than 100 transactions across recorded music, music publishing and theatricals, as it seeks to grow its business and scale and leverage its operations.

Concord is a full-service music and theatrical rights company with an extensive new release artist and writer programme. Concord’s global team provides artists, songwriters, playwrights and composers with creative and administrative support in sync, licensing, marketing, promotion and A&R.

Concord continues to be active in the market, looking at many potential transactions that meet its investment criteria. Concord and its management have followed the progression of RHM since IPO and believe that RHM’s assets complement Concord’s long-standing objective to acquire high quality and long-term music assets.

Concord believes that the quality of RHM’s assets are consistent with Concord’s existing holdings, and creators connected to the rights acquired will benefit from the services of Concord’s existing creative and administrative support teams globally.

Commenting on the Acquisition, Robert Naylor, Chairman of RHM said: “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.”

Commenting on the Acquisition, Bob Valentine, CEO of Concord said: “Since its IPO, RHM has built an impressive portfolio of music rights which generate revenue across a variety of income streams and have demonstrated their ability to stand the test of time.

As one of the world’s leading music companies with a proven track record of strategic catalogue expansion, Concord has a global team of sync, licensing, marketing, copyright and royalty experts well positioned to maximise the value of this portfolio for all of the songwriters and artists within it.

This offer enables RHM shareholders to realise their investment in the business at an attractive premium to the undisturbed share price, while the transaction provides an opportunity to create value for all stakeholders.”

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