Hipgnosis ditches hits by Shakira and Nelly in bid to bolster its share price

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. 

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.