Spackman Entertainment acquires Korean film production company, Simplex  |

Spackman Entertainment acquires Korean film production company, Simplex 

SINGAPORE: Spackman Entertainment Group Limited, one of Korea’s leading entertainment production groups founded by media investor Charles Spackman, has entered into a sale  and  purchase  agreement  with  four  independent  third  parties  to  acquire  the entire  issued  and  paid-up  share  capital  of  Simplex Films  Limited. Simplex  is  an  early  stage  film  production  firm  headed  by  veteran  Korean producer, Lim Ji-young. Simplex  intends  to  produce  top  quality  films  to  be theatrically  released  and distributed in Korea and overseas. Simplex shall first release its films initially in Korea and  subsequently  in  post-theatrical  markets  such  as  cable  television,  broadcast television, IPTV, video-on-demand, and home video/DVD, etc. John Ko, Chief Executive Officer of Spackman Entertainment Group said, “Through the acquisition of Simplex, the Group shall be able to expand its film production capacity and look forward to positive contribution from Simplex’s maiden film within this fiscal year.” The total purchase consideration for the Proposed Acquisition shall be 165,000,000 newly issued ordinary shares of the Company at S$0.02 per share, which was arrived at following arm’s length negotiations on a willing buyer, willing seller basis, as well as reviewing the average of the Group’s past one month’s volume weighted average price  of  approximately  S$0.018,  and  taking  into  account,  inter  alia,  the  Target Company’s  unaudited  net  profit  before  tax  of  KRW72,288,446  (approximately S$83,743) for the period from 1 January 2019 to 31 May 2019. The Group believes that the Proposed Acquisition can enable the Group to be better positioned to invest into Simplex’s pipeline of -quality films in terms of script and casting in order to seek higher returns as both a film producer and an investor.  The Proposed Acquisition is in line with the Group’s strategy of aggressively looking out  for  acquisitions  that  can  add  accretive  value  to  the  Group’s  existing  film production business. The Group views that Simplex is equipped with the capability to produce top quality films based on Ms. Lim Ji-young’s track record and experience in film production. The Proposed Acquisition also allows the sharing of networks and resources to bring about higher business synergy and efficiency in the Group’s film production business segment.
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