Spackman Entertainment Group Acquires Greenlight Content

October, 19/2018 - 12:58
Spackman Entertainment Group Acquires Greenlight Content

  • Greenlight Content isprimarily involved in the business of investing into dramas and movies, as wellas providing consulting services for the production of Korean content
  • Greenlight Content is amain investor of the Group's first co-produced drama TERIUS BEHIND ME, a romantic comedy mystery drama starring So JiSub of the Group's associated company, Spackman Media Group
  • Acquisition of Greenlight Content allows the Groupto reinforce its foothold into the Korean drama sector and raise theutilization rate of Spackman Media Group to participate into the highestquality entertainment content projects

 

SINGAPORE - Media OutReach - 19 October 2018 - Spackman Entertainment GroupLimited ("Spackman Entertainment Group" or the "Company" andtogether with its subsidiaries, the "Group"), one of Korea's leadingentertainment production groups founded by financier Charles Spackman, wishesto announce that the Company has entered into a sale and purchase agreementwith four independent third parties (the "Vendors")to acquire the entire issued and paid-up share capital of the GreenlightContent Limited (the "Target Company"or "Greenlight Content") (the "Proposed Acquisition").


The Target Company owns 100%equity interest in Greenlight Content Co., Ltd. which is incorporatedin the Republic of Korea. Greenlight Content is headed by Mr. John Ko ("Mr. Ko"), one of the Vendors and theChief Executive Officer of Greenlight Content Co., Ltd. He is a 20-year veteranin the media and technology industry. Mr. Ko's current and previous clientsinclude Sidus Pictures, a film production and distribution company based inKorea, and Mongjakso Co. Ltd., a Korean producer of TV dramas.


GreenlightContent is primarily involved in the business of investing into dramas andmovies, as well as providing consulting services for the production of Koreancontent. It is also one of the main investors of the Group's first co-produceddrama, TERIUS BEHIND ME, a romanticcomedy mystery story starring top Korean actor So Ji Sub of the Group'sassociated company, Spackman Media Group Limited ("Spackman Media Group"). TERIUSBEHIND ME led viewership ratings on the day of its premiere,27 September 2018, in Korea. According to Nielsen Korea, the hit TV drama scoredhigh premiere viewership ratings of 7.5%, 8.7%, 7.2% and 7.4% for the firstfour episodes released on the day of its premiere.


The total purchase considerationfor the Proposed Acquisition shall be 150,000,000 newly issued ordinary shares ofthe Company at S$0.046 per share, which was arrived at following arm's lengthnegotiations on a willing buyer, willing seller basis, as well asreviewing the average of the Group's past one month's volume weighted averageprice of approximately US$0.043, and taking into account, inter alia, Greenlight Content'sunaudited net profit of US$938,916 (approximately S$1.3million[1]) for the period from 1 January 2018 to 30 September 2018 and theunaudited net asset and net tangible asset value of US$1.3 million(approximately S$1.9 million1) and US$1.0 million (approximately S$1.4 million1) as at 30 September 2018.  


The Group views that theProposed Acquisition is in line with the Group's strategy of expanding itsbusiness scope to the production of TV dramas as well as participating intohigh quality content projects. The Proposed Acquisition shall enable the Groupto accelerate its access into these top-tier projects and reinforce the Group'sfoothold in the Korean drama sector which the Group has already launched entryinto, starting with its first co-produced drama. In addition, GreenlightContent's unique strength as a consultant can allow the Group to bettercoordinate potential pairing of new content projects with the talent managementplatform of Spackman Media Group.


The Group believes thatGreenlight Content is well-positioned to raise the utilization rate of SpackmanMedia Group as the Group continues to leverage on its talent managementplatform to participate into and actively fill roles in top qualityentertainment content projects.  

 

About Spackman Entertainment Group Limited

Spackman Entertainment GroupLimited ("SEGL" or the "Company"), and together with itssubsidiaries, (the "Group"), one ofKorea's leading entertainment production groups founded by investment veteran,Mr. Charles Spackman, is primarily engaged in the independent development,production, presentation, and financing of theatrical motion pictures in Korea.In order to diversify our revenue streams, in the second half of 2018, we willto expand our business portfolio to include the production of Korean televisiondramas. In addition to our content business, we also make investments intoentertainment companies and film funds that can financially and strategicallycomplement our existing core operations. SEGL is listed on the Catalist of theSingapore Exchange Securities Trading Limited under the ticker 40E.

 

SEGL's Zip Cinema Co., Ltd. ("Zip Cinema") is one of the mostrecognised film production labels in Korea and has originated and produced someof Korea's most commercially successful theatrical films, consecutivelyproducing 8 profitable movies since 2009 representing an industry leading trackrecord. Recent theatrical releases of Zip Cinema's motion pictures include someof Korea's highest grossing and award-winning films such as MASTER (2016), THE PRIESTS (2015), COLD EYES(2013), and ALL ABOUT MY WIFE (2012).For more information on Zip Cinema, do visit https://zipcine.com  

 

SEGL also owns Novus MediacorpCo., Ltd. ("Novus Mediacorp"), aninvestor, presenter, and/or ancillary distributor for a total of 76 films (53Korean and 23 foreign) including THEOUTLAWS and SECRETLY, GREATLY,which was one of the biggest box office hits of 2013 starring Kim Soo-hyun of MY LOVE FROM THE STARS fame, as well as FRIEND 2: THE GREAT LEGACY. In 2012,Novus Mediacorp was also the post-theatrical rights distributor of ALL ABOUT MY WIFE, a top-grossingromantic comedy produced by Zip Cinema. In 2018, THE OUTLAWS, co-presented by Novus Mediacorp broke the all-timehighest Video On Demand ("VOD")sales records in Korea. Novus Mediacorp is currently in the process of seekinga listing on the Singapore Stock Exchange. For more information on NovusMediacorp, do visit  https://novusmediacorp.com 

 

Our films are theatricallydistributed and released in Korea and overseas markets, as well as forsubsequent post-theatrical worldwide release in other forms of media, includingcable TV, broadcast TV, IPTV, video-on-demand, and home video/DVD, etc. Werelease all of our motion pictures into wide-theatrical exhibition initially inKorea, and then in overseas and ancillary markets.

 

We also operate a café-loungecalled Upper West, in the Gangnam district of Seoul and own a professionalphotography studio, noon pictures Co., Ltd..

 

The Company holds an effectiveshareholding interest of 43.88% in Spackman Media Group Limited ("SMGL"). SMGL, a company incorporated inHong Kong, together with its subsidiaries, is collectively one of the largestentertainment talent agencies in Korea in terms of the number of artists undermanagement, including some of the top names in the Korean entertainmentindustry. SMGL operates its talent management business through renownedagencies such as MS Team Entertainment Co., Ltd., UAA & Co Inc., Fiftyone KInc., SBD Entertainment Inc., and Kook Entertainment Co., Ltd. Through thesefull-service talent agencies in Korea, SMGL represents and guides the professionalcareers of a leading roster of award-winning actors/actresses in the practiceareas of motion pictures, television, commercial endorsements, and brandedentertainment. SMGL leverages its unparalleled portfolio of artists as aplatform to develop, produce, finance and own the highest quality ofentertainment content projects, including theatrical motion pictures, varietyshows, and TV dramas. This platform also creates and derives opportunities forSMGL to make strategic investments in development stage businesses that cancollaborate with SMGL artists. SMGL is an associated company of the Company.

 

The Group owns a 100% equity interest in Frame Pictures Co., Ltd. ("Frame Pictures"). Frame Pictures is a leader in the movie/dramaequipment leasing business in Korea. Established in 2014, Frame Pictures hasworked with over 25 top directors and provided the camera and lightingequipment for some of Korea's most notable drama and movie projects including the upcoming Korean film GIRL COPS (2018) featuring rising star Wi Ha-jun of SMGL and THE GREATEST DIVORCE (2018) starring Bae Doona of SMGLIn 2018, Frame Pictures has also won contracts to supply equipment to THE BEAUTY INSIDE (2018), HUNDRED MILLION STARS FROM THE SKY (2018), LOVELY HORRIBLY (2018), THE GUEST (2018), historical Korean movie MALMOI, SUITS (2018) featuring Park Hyung-sik of SMGL, MISTRESS (2018), LIFE (2018), LIVE (2018) starring Lee Kwang-soo of RUNNING MANMY MISTER (2018) and Netflix's first Korean original production LOVE ALARM (2018). Frame Pictures and Novus Mediacorp are currently seeking to list on the Singapore Stock Exchange.


 The Company owns a 100% equity interest in Take Pictures Pte. Ltd. ("Take Pictures") which owns a strong lineup of 10 film projectsincluding the co-production with Zip Cinema for THE PRIESTS 2.

 

The Company owns a 100% equity interest in Constellation Agency Pte. Ltd. ("Constellation Agency"). Constellation Agency, which owns The PFactory Co., Ltd. ("The P Factory")and Platform Media Group Co., Ltd. ("PMG"),is primarily involved in the business of overseas agency for Korean artistsventuring into the overseas market. The P Factory is an innovative marketingsolutions provider specializing in event and branded content production. PMG isa talent management agency which represents and manages the careers of majorartists in film, television, commercial endorsements, and brandedentertainment.

 

On 7 May 2018, the Company announced that it would spin-off Novus Mediacorp and Frame Pictures into a combined entity to seek listing on the Catalist Board of the Singapore Exchange Securities Trading Limited to exploit the growing post-theatrical and camera equipment leasing markets.


For more details, dovisit https://www.spackmanentertainmentgroup.com/


[1]Exchange Rate of 1 USD: 1.38 SGD


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