Spackman Entertainment: Acquiring Korean movie investor Greenlight Content

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Spackman Entertainment said on Friday that it entered a deal to acquire all of South Korean movie and drama investor Greenlight Content from four independent third parties for around US$5.0 million, or around S$6.9 million, in an all stock deal.

The total purchase price was 150 million new Spackman shares issued at S$0.046 a share, the Singapore-listed South Korean entertainment production group said in a filing to SGX after the market close on Friday.

Greenlight Content primarily invests in dramas and movies and provides consulting services for producing Korean content, it said.

“The proposed acquisition is in line with the group’s strategy of expanding its business scope to the production of TV dramas as well as participating into high quality content projects,” Spackman said in the statement. “The proposed acquisition shall enable the group
to accelerate its access into these top-tier projects and reinforce the group’s foothold in the Korean drama sector.”

Spackman noted that Greenlight Content was one of the main investors in its first co-produced drama, Terius Behind Me, which led viewer ratings on 27 September, the day it premiered on television in South Korea.

“Greenlight Content’s unique strength as a consultant can allow the group to better coordinate potential pairing of new content projects with the talent management platform of Spackman Media Group,” the filiing said.

John Ko, CEO of Greenlight Content, was and one of the parties selling shares to Spackman, it said.

The purchase price was arrived at after taking into account the S$0.043 average volume weighted average price of Spackman’s shares over the past month and Greenlight content’s unaudited net profit of US$938,916, or around S$1.3 million, for the January-to-September period, it said.

The issue price of the shares was also a premium of 15.3 percent of the volume weighted average price of S$0.0399 a share, based on trade on SGX’s Catalist board on 18 October, it said.

The new shares will represent around 17.80 percent of Spackman’s issued share capital after the deal is completed, it said.

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