Spackman to issue shares worth US$6.9m to raise stake in associate by 7.52%

SPACKMAN Entertainment Group (SEG) has agreed to buy another 7.52 per cent stake in associated company Spackman Media Group (SMG) for US$6.9 million, from certain existing SMG shareholders.

Upon completion, SEG's interest in SMG will increase to 41.28 per cent.

SEG will pay for the acquisition by issuing new SEG shares worth US$6.9 million to the existing SMG shareholders.

The issue price of S$0.09 is at a premium of 26.8 per cent over the volume-weighted average price of S$0.071 for trades in SEG done on the Catalist board of the Singapore Exchange on May 18, being the market day preceding the day the agreement was signed.

The new SEG shares will represent about 14.67 per cent of SEG's total share capital right now, which also works out to about 12.79 per cent of SEG's enlarged share capital.