Doubts raised over Spackman's proposed divestment of an associate for at least S$32 million

Singapore

SPACKMAN Entertainment Group's proposed divestment of an associate for at least S$32 million has raised concerns as the transaction appears to be at a considerable loss, and the buyer would become a subsidiary of the Catalist-listed firm after the deal.

This more so as Spackman Entertainment had acquired the associate Spackman Media Group Limited at a significant premium to net tangible assets (NTA) merely two years ago.

In his blog over the weekend, corporate governance advocate Mak Yuen Teen questioned why Spackman Entertainment would propose such a low selling price for its stake in Spackman Media.

He noted that Spackman Entertainment had acquired a 27.4 pe…

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