- Under the Proposed Partnership, the Group’s Korean strategic partner, Sunwoo Produce which shall be the single largest shareholder of ESA, an entertainment company listed on the KOSDAQ, intends to collaborate with the Group to penetrate new overseas market in entertainment-related content and businesses, and strategically invest into the Group and/or its affiliates
- The Proposed Partnership can enable both parties to utilize their respective networks and resources to expand their foothold in entertainment-related sectors across multiple regions
SINGAPORE – Media OutReach – 5 November 2019 – Spackman Entertainment Group Limited (“Spackman Entertainment Group” or the “Company” and together with its subsidiaries, the “Group“), wishes to announce that yesterday it has entered into a non-binding memorandum of understanding with a strategic partner, Sunwoo Produce Inc. (“Sunwoo Produce“), a company incorporated in the Republic of Korea, to collaborate in entertainment-related business and investment (the “Proposed Partnership“).
Sunwoo Produce has signed a definitive share purchase agreement (the “Share Purchase“) on 18 October 2019 to acquire 15.68% of ESA Co. Ltd. (“ESA“), an entertainment company listed on the KOSDAQ. Following the completion of the Share Purchase, which is expected to be in the second half of this month, Sunwoo Produce will become the single largest shareholder of ESA.
Under the Proposed Partnership, Sunwoo Produce and the Group shall collaborate in opportunities for overseas production, investment and distribution of various entertainment-related content and businesses by utilizing the Group’s global networks. Sunwoo Produce and its affiliates, including but not limited to ESA, shall seek opportunities to strategically invest into the Group and/or its affiliates.
In addition, Sunwoo Produce and the Group intend to partner in other entertainment-related businesses and projects such as film/TV production, talent management, and other media businesses in the markets of Korea, Southeast Asia, and U.S. The Group shall also arrange foreign investors for Sunwoo Produce, as well as advise and assist in the management of the overseas business of ESA.
Sunwoo Produce and the Group shall also cooperate to establish a fund focusing on investments in entertainment and technology, which is to be co-managed by the Group and Sunwoo Produce.
The Proposed Partnership can allow both parties to utilize their respective networks and resources in order to venture and expand their foothold in entertainment-related sectors across multiple regions.
The memorandum of understanding of the Proposed Partnership shall be terminated if a definitive agreement is not executed by 31 December 2019, unless extended by mutual written agreement.
The Company will update its shareholders as and when there are any material developments and/or upon execution of definitive agreements in relation to the Proposed Partnership.