Spackman Entertainment, a company listed in Singapore with a collection of Korean-themed investments, said that it has received a takeover offer for its Zip Cinema subsidiary, one of Korea’s leading independent production companies.
In a regulatory filing, Spackman said that a non-binding letter of intent was delivered by Charm Accounting Corporation. Charm in turn is acting on behalf of an undisclosed “content production company listed in Korea.” It is not clear whether Zip’s management supports the bid.
Zip Cinema has previously produced hit films including 2014’s “My Brilliant Life,” 2015’s “The Priests” and 2018’s “Golden Slumber.” It was also a minority investor in Bong Joon-ho’s original “Snowpiercer” film from 2013.
Spackman explains that it has not yet held talks with Charm, which wants to come to an agreement by the end of the year. The value of Charm’s bid has not been disclosed, and Spackman says that it now intends to explore other “strategic alternatives for this major asset.”
Spackman has acquired other film assets in Korea. After listing on the Singapore Stock Exchange in 2014, it acquired producers Korea Take in 2017 and Simplex in 2019.
The Korean film industry is attracting increased interest from local and international sources. That has been helped by the Cannes and Oscars success of “Parasite” and more recently by Korea moving towards a post-coronavirus normality quicker than many other countries, enabling film and TV production to partially restart.
Buoyed by an unusually high participation rate, and the continuing success of locally-made films, the country’s theatrical industry has also boomed. In 2019, it overtook the U.K. to become the fourth largest box office territory in the world behind North America, China and Japan.