SINGAPORE - Singapore-listed Spackman Entertainment Group said in a pre-market filing on Wednesday (Oct 11) that it has entered into a sale and purchase agreement to acquire Korean film production company Take Pictures for S$3.9 million in shares and cash.
Take Pictures, a dormant company, owns 100 per cent of Studio Take, which was founded by veteran movie producer Song Dae-chan.
Studio Take currently has developed and owns a lineup of 10 film projects including a co-production with the Spackman's indirect wholly-owned subsidiary, Zip Cinema, of The Priests 2, a sequel to one of Korea's most commercially successful theatrical films of 2015, The Priests.
The proposed acquisition will be paid for by S$589,286 in cash and 25,686,816 newly issued ordinary shares of Spackman at S$0.13 per share.
Mr Charles Spackman, Spackman executive chairman & CEO, said, "We believe that the acquisition of Take Pictures will significantly benefit our film production business as it will allow the Group to expand its annual movie production capacity. Led by a 15-year veteran movie producer who is familiar with our strategy and approach to filmmaking through his years at Zip Cinema, Take Pictures is well-positioned to deliver similar levels of success as Zip Cinema.
He added: "In order to add accretive value to our existing film production business, we plan to focus on acquiring or investing into early stage production companies that can be more easily integrated with our culture of movie making."
Assuming the proposed acquisition had been completed at the beginning of the financial year ended Dec 30, 2016, the loss attributable to the Spackman shareholders would remain relatively the same at approximately US$2.43 million. This is mainly due to Take Pictures being a dormant company in financial year 2016 before acquiring Studio Take.