SHARES in The Hipgnosis Songs Fund plummeted yesterday after the firm reported it had slashed the value of its portfolio by more than a quarter.

The fund, which owns the back catalogues for artists including Fleetwood Mac and Shakira, said the latest valuation by a newly-appointed adviser, Shot Tower, saw the mid-point value of its songs catalogue cut by 26.3 per cent since the end of September, to $1.93bn (£1.5bn).

Shot Tower was appointed by the company as part of its strategic review of the value of its portfolio of music streaming rights.

The Shot Tower valuation compared to the 30 September 2023 valuation of £2.1bn.

The embattled group - cofounded by Merck Mercuriadis (pictured) and Nile Rodgers of Chic - said that due to the fall in its net asset value, it would need to use the firm's free cash to pay down debt and therefore would not be restarting shareholder dividend payouts "for the foreseeable future".

Following news of the portfolio's slashed valuation, shares in Hipgnosis Song Fund closed 8.24 per cent in the red.

(c) 2024 City A.M., source Newspaper