Spackman buys 51% stake in Korean theatrical film company for S$2.53m

CATALIST-LISTED Spackman Entertainment Group has agreed to buy a 51 per cent stake in Novus Mediacorp for S$2.53 million.

Novus is an investor and presenter of Korean theatrical films, and specialises in ancillary distribution, or distribution to non-theatrical markets. It has been involved in 54 films since it was incorporated in 2009.

It recorded a revenue of 4.61 billion won (S$5.39 million) and a net profit of 1.8 billion won (S$1.26 million) for the 2013 financial year.

Spackman will pay S$1.35 million in cash, and the balance through the issuance of 3.4 million new shares at 34 cents apiece.

The acquisition will enable Spackman to capitalise on the ancillary market segment in Korea, the fastest growing segment of the film industry in recent years, the South Korean film production company said.

The additional pipeline of productions from Novus will also bring the group's production slate to 10 films, of which at least seven will be released next year. This makes it one of Korea's largest theatrical film production companies, in terms of the number of productions a year.