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Spackman spends S$7.6m in cash and shares to acquire studio, raise talent agency stake
SINGAPORE-LISTED South Korea-based entertainment company Spackman Entertainment Group is acquiring Korean film production company Studio Take for S$3.9 million in cash and stock.
Under the agreement, Spackman will pay S$589,286 in cash and issue 25.69 million shares at 13 Singapore cents apiece to the vendors, who comprise four independent parties whose identities were not disclosed.
The issue price represents a premium of 12.1 per cent to the stock's closing price of 11.6 Singapore cents as at Oct 10. The consideration shares will represent about 5.27 per cent of Spackman's enlarged share capital. None of the vendors will become a substantial shareholder, the company said.
Studio Take is a development motion picture production company founded by veteran movie producer, Song Dae Chan. It has a tentative line-up of 10 films in development and pre-production.
Spackman chief executive Charles Spackman said: "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... In order to add accretive value to our existing film production business, we plan to focus on acquiring or investing into early stage production companies that can be more easily integrated with our culture of movie making."
In a separate Singapore Exchange (SGX) filing, Spackman said that it has raised its stake in talent agency associate Spackman Media Group Ltd to 29.12 per cent from 26.17 per cent by issuing US$2.7 million worth of Spackman shares at 13 Singapore cents apiece. The consideration shares represent 5.81 per cent of enlarged share capital.