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Spackman to seek Catalist listing for combined entity of 2 subsidiaries
SPACKMAN Entertainment Group announced on Monday that its board has approved the spin-offs of subsidiaries Novus Mediacorp and Frame Pictures, with a view to eventually listing them on the Catalist board as a combined entity.
The entertainment production group has hired RHT Capital as both the financial adviser for the proposed spin-off, as well as the issue manager and full sponsor in relation to the proposed Catalist listing.
Spackman owns 51 per cent of film distributor Novus Mediacorp, and fully owns Frame Pictures Co, which leases equipment for movie production.
Post spin-off, both companies will be combined into an as yet-unnamed combined entity.
Spackman believes the proposed spin-off and subsequent listing will allow the combined entity of Novus Mediacorp and Frame Pictures to independently raise the capital necessary to "unlock the full potential of its operations and projects", and to capitalise on the "rapidly growing" post-theatrical and camera equipment leasing markets, Spackman said in a media statement.
Richard Lee, Spackman's interim chief executive and executive director said the company's valuation "remains significantly lower" than its industry peers, despite returning to profitability.
"Therefore, we seek to restructure our group through this proposed listing to unlock the value of our non-core subsidiaries, Novus Mediacorp and Frame Pictures," Mr Lee said.
"We believe the proposed listing will create a financially independent entity that can directly exploit this growth and translate such value to our shareholders," he added.
Catalist-listed Spackman was trading at S$0.074 as at 2.57pm, up S$0.003 or 4.23 per cent.