Spackman eyes overseas ventures in proposed tie-up with South Korea's Sunwoo Produce

SPACKMAN Entertainment Group is tying up with its South Korean strategic partner Sunwoo Produce to collaborate on entertainment-related business and investment.

They have inked a non-binding memorandum of understanding (MOU) for the proposed partnership, which covers opportunities for overseas production, investment and distribution of various entertainment-related content and businesses, which will leverage Spackman's global networks, Spackman said on Tuesday in a regulatory filing.

The MOU will be terminated if a definitive agreement is not reached by Dec 31, unless both parties agree to extend the date.

Spackman and Sunwoo Produce also intend to partner in "other entertainment-related businesses and projects such as film or TV production, talent management and other media businesses located in Korea, South-east Asia and the US".

Spackman will also help Sunwoo Produce with foreign investors, along with advising and assisting the management of the overseas business of Kosdaq-listed entertainment company ESA Co Ltd.

Sunwoo Produce had on Oct 18 signed a definitive share purchase agreement to acquire a 15.7 per cent stake in ESA. Sunwoo Produce will become ESA's largest stakeholder upon completion of the share purchase, which is expected in the second half of November 2019.

Sunwoo Produce and its affiliates, which include ESA, will also seek strategic investment opportunities into Spackman or its associates.

Spackman shares were trading at 1.5 Singapore cents as at 10.06am, up 0.1 cent or 7.1 per cent on Tuesday.