06:57 AM EDT, 04/22/2024 (MT Newswires) -- Hipgnosis Songs Fund said on Monday that it is reviewing a proposed offer for the company by Blackstone (BX) that "is at a value that it would be minded to recommend to its shareholders should Blackstone announce a firm intention to make an offer".

Blackstone (BX) said on Saturday that it had made a new proposal to acquire the issued and to be issued share capital of Hipgnosis at a price of $1.24 per share in cash, according to a regulatory filing. It is the private equity investor's fourth proposal.

It comes hot on the heels of an offer from Concord Chorus, an entity indirectly controlled by Alchemy Copyrights, LLC, last Thursday to acquire the company for at least $1.16 per share in cash.

If Blackstone's proposal becomes a firm offer, it would value the music repository, which includes rights to songs by Shakira and Red Hot Chili Peppers, at about $1.5 billion, according to reports by several news outlets.

"Blackstone strongly encourages the board of Hipgnosis to recognise the significant increase in value available to all shareholders" under its proposal, the company said in a statement dated Saturday.

The private equity company also said that under the terms of an investment advisory agreement in 2018 between its portfolio company Hipgnosis Song Management Limited, as investment adviser, and Hipgnosis, Hipgnosis Song Management Limited has "has an option" to purchase the entire portfolio of songs from Hipgnosis if the agreement is terminated.

It said that the option could be exercisable "at any point in time during the six month period following the effective date of termination of the IAA [investment advisory agreement]".

"Blackstone and its portfolio company HSM [Hipgnosis Song Management Limited], having taken extensive legal advice, remain confident in the enforceability of the option," it added.

Hipgnosis Songs Fund Limited said in its statement on Monday that there could be no certainty that a firm offer would be made for the company by Blackstone, nor as to the terms of any such offer.

It said that the Hipgnosis directors continue to recommend to Hipgnosis shareholders the cash offer by Concord Chorus Limited.