(Bloomberg) -- Concord, a music rights investor, has agreed to buy Hipgnosis Songs Fund Ltd. in a deal that values the song catalog company at about $1.4 billion. 

The bidders have offered Hipgnosis investors $1.16 per share in cash, representing a premium of 32% from the last closing price, the companies said in a statement on Thursday. Hipgnosis’ board has unanimously agreed to the deal, and said in the statement that it’s unlikely that the share price will increase to reflect the company’s performance because of “numerous company-specific and certain market issues.” 

Shares in Hipgnosis rose 31% at 8.06 a.m. in London on Thursday.

Read More: Hipgnosis Songs Fund Cancels Dividends, Deepening Turmoil

The deal caps a period of turmoil for the troubled fund. Founded in 2018 in London by Merck Mercuriadis, a former manager of Elton John and Beyonce, Hipgnosis bought up song catalogs for artists including the Red Hot Chili Peppers, Journey and Neil Young with the goal of turning music into an asset class. 

But the fund struggled to recoup its investment in music rights. The company launched a strategic review last year and hired music rights specialist Shot Tower, resulting in a cut to its song portfolio valuation of more than a quarter. In March, Hipgnosis again cut the value of its portfolio after uncovering an accounting error. The company’s shares have declined 2.1% this year and closed at 70.5 pence in London trading on Wednesday. 

Nashville-based Concord, whose legal name is Alchemy Copyrights, buys up music rights and companies. Its catalog spans theater, recorded music and publishing and includes artists such as Creedence Clearwater Revival and Iggy Pop. Apollo Global Management will provide financing in the form of debt capital, as well as a minority, indirect equity interest in the acquiring entity.

Read More: Concord, Apollo Wrap Up $500 Million Bond for Round Hill Music

(Updates with details throughout. A previous version corrected spelling of Creedence Clearwater Revival in final paragraph)

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