Irenic Reportedly Launches $1.2B Unsolicited Bid for Reservoir

Activist hedge fund Irenic Capital Management is reported to have made an unsolicited bid of $1.2 billion for independent music publisher Reservoir Media, sending the latter’s stock surging by almost 20%.

The bid:

• Bloomberg reports that the bid was submitted in February, and valued Reservoir at between $1.1 billion and $1.2 billion, including debt, at $10 to $11 per share.

• Irenic is one of Reservoir’s largest shareholders, with Music Business Worldwide quoting an SEC filing that puts their stake at 9.2%.

• As the publication points out, the transaction would likely require the support of Wesbild Inc, which holds approximately 44% of Reservoir’s equity, and private equity firm Richmond Hill Investments, which owns a 21% stake of Reservoir’s equity.

• Reservoir has not indicated if it’s interested in selling.

Catalog of hits:

• Reservoir represents a portfolio of more than 150,000 copyrights and approximately 36,000 master recordings.

• Its portfolio includes releases by artists such as Miles Davis, Joni Mitchell, John Denver, Sheryl Crow and more.

• In calendar Q4 Reservoir generated $45.6 million in revenue, representing 8% YoY growth.