Spackman Entertainment, a South Korean theatrical film production group, said it entered into an agreement with four independent third parties to buy Korean film production company Take Pictures for S$3.9 million.
Take Pictures owns Studio Take, a development motion picture production company founded by veteran movie producer, Song Dae-chan.
As per the deal, Spackman will pay S$589,286 in cash and 25,686,816 newly issued ordinary shares of the company at a price of S$0.13 per share, the company said in a statement on Tuesday.
The issue price represents a premium of 12.1 percent to the stock's closing price of 11.6 Singapore cents as at October 10. The consideration shares will represent about 5.27 percent of Spackman's enlarged share capital.
None of the vendors will become a substantial shareholder, the company said.
Studio Take owns a strong lineup of 10 film projects including the co-production with the company's indirect wholly-owned subsidiary, Zip Cinema of Priests II.
Studio Take seeks to produce top quality films that will be theatrically distributed and released in Korea and overseas markets.
"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," said Charles Spackman, Executive Chairman & Chief Executive Officer of Spackman Entertainment.
Earlier this year, Spackman also acquired Frame Pictures, a movie and drama equipment leasing business, for S$1.11 million in cash, and 497,250 issued ordinary shares of the company's associated firm, Spackman Media Group .
Shares in Spackman Entertainment jumped 3.5 percent to S$0.12 on the Singapore Exchange. The stock has lost about 38 percent so far this year.
