Spackman eyes Catalist listing for combined subsidiaries

Spackman Entertainment Group directors have approved spinning off two subsidiaries with a view to eventually listing them on Catalist as a combined entity

The entertainment production group has hired RHT Capital as the financial adviser for the proposed spin-off of Novus Mediacorp and Frame Pictures.

RHT will also be the issue manager and full sponsor in relation to the possible Catalist listing.

Catalist-listed Spackman owns 51 per cent of film distributor Novus Mediacorp and fully owns Frame Pictures, which leases equipment for movie productions. After the spin-off, both companies will be combined into an as yet unnamed entity.

Spackman believes the move will allow the entity to independently raise capital to unlock the full potential of its operations and projects. It will also be positioned to capitalise on the rapidly growing post-theatrical and camera equipment leasing markets.

Spackman interim chief executive and executive director Richard Lee said the company's valuation remains significantly lower than its industry peers', despite returning to profitability.

"Therefore, we seek to restructure our group through this proposed listing to unlock the value of our non-core subsidiaries... We believe the proposed listing will create a financially independent entity that can directly exploit this growth and translate such value to our shareholders."

Spackman shares closed up 0.2 cent to 7.3 cents yesterday.

A version of this article appeared in the print edition of The Straits Times on May 08, 2018, with the headline 'Spackman eyes Catalist listing for combined subsidiaries'. Print Edition | Subscribe