Singapore-listed Spackman Entertainment Group said in a pre-market filing yesterday that it has entered into a sale and purchase agreement to acquire South Korean film production company Take Pictures for $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 line-up of 10 film projects, including a co-production with Spackman's indirect wholly-owned subsidiary Zip Cinema of The Priests 2, a sequel to one of South Korea's most commercially successful theatrical films of 2015.
The proposed acquisition will be paid for with $589,286 in cash and 25,686,816 newly issued ordinary shares of Spackman at 13 cents each.
"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," said Mr Charles Spackman, Spackman executive chairman and chief executive officer.
Led by a 15-year veteran movie producer, Take Pictures is well positioned to deliver similar levels of success as Zip Cinema, he said.
"In order to add accretive value to our existing film-production business, we plan to focus on acquiring or investing in early-stage production companies that can be more easily integrated with our culture of movie-making," he added.
Assuming the proposed acquisition had been completed at the beginning of the financial year ended Dec 30 last year, the loss attributable to the Spackman shareholders would remain relatively the same at approximately US$2.43 million (S$3.3 million). This is mainly due to Take Pictures being a dormant company in financial year 2016 before acquiring Studio Take.