Spackman Equities Group Accumulates 5% Stake in Korean

Spackman Equities Group Accumulates 5% Stake in Korean Auto-Parts
Maker 
TORONTO, ONTARIO and SEOUL, KOREA -- (Marketwire) -- 11/02/12 --
Spackman Equities Group Inc. (TSX VENTURE:SQG) ("SEGI") announced
today that it, in conjunction with its wholly-owned subsidiary SEGI
Investments Limited ("SIL"), has accumulated over a 5% stake in
Cheongbo Industrial Co., Ltd. ("Cheongbo") (013720.KQ), a Korean
auto-parts manufacturer listed on the KOSDAQ. On October 30th, SEGI
and SIL submitted a filing with the Financial Supervisory Service of
Korea disclosing that they, as related parties, purchased a total of
306,529 shares, or 5.07%, of Cheongbo, with SEGI owning 110,943
shares and SII owning 195,586 shares. The total investment amount was
KRW 734,182,310 (CAD 671,585). Cheongbo shares rose 14.9% on the
following day after the public disclosure of SEGI's ownership. 
Founded in 1978, Cheongbo is a Korean manufacturer of
precision-engineered transmission parts, including hydraulic
tensioner housings, engage pieces, valve tappets and fixture
injectors. Cheongbo is a major supplier to such multinational
customers as Hyundai Motor Company, Kia Motors, and GM-Korea. In
2011, Cheongbo posted revenues of KRW 24.61bn (CAD 22.51m) and net
profit of KRW 2.82bn (CAD 2.58m). The company has paid out an annual
dividend of KRW 50 (CAD 0.045) for the past three years, currently
implying a yield of 1.8%. Despite the recent rise in its market
value, the stock of Cheongbo currently trades at 6.1x trailing 12
months earnings, which is comparatively lower than the average
multiple of 11.5x for the Korean auto-parts sector (Data source:
Bloomberg) (http://www.cheongbo.co.kr). 
Charles Spackman, Chairman and Chief Executive Officer of SEGI,
stated that, "The investment into Cheongbo shares is in line with our
strategy to identify and invest in competitive small capitalization
growth companies that trade at attractive valuations, and are often
overlooked by the market. We believe Cheongbo is one such company
whose share price does not fully reflect its underlying fundamentals,
the quality of its products, its market position and growth
prospects. As a substantial shareholder, we plan to approach
Cheongbo's management to request certain actions to further enhance
value for Cheongbo shareholders, such as re
questing for an increase
in dividends, as well as the outright cancellation of the 6.9% worth
of treasury shares that the company currently holds." 
About Spackman Equities Group Inc. 
Spackman Equities Group Inc. ("SEGI") is a diversified investment
holding company that invests into and develops small/medium-sized
growth companies that possess proprietary technologies or
industry-specific know-how, primarily in Asia. SEGI also makes
investments in selected publicly-traded companies that SEGI believes
are attractive investment propositions. The objectives of SEGI are to
(i) invest into or acquire businesses with compelling growth
potential at attractive valuations, (ii) build a diversified and
balanced portfolio of investments, and (iii) deliver the collective
value derived from the performance of its portfolio of investments to
the shareholders of SEGI. Currently, SEGI's holdings include: 


 
--  indirectly-held majority ownership of two leading Korean movie
    production companies, namely, Opus Pictures Co., Ltd. ("Opus") and Zip
    Cinema Co., Ltd. ("Zip"); 
 
--  100% of Spackman Entertainment Korea Inc., a movie investment company
    that invests into films produced by Opus and Zip; 
 
--  100% of SEGI Investments Limited, an investment company that invests
    into Korean public equities; 
 
--  17.92% equity in Intech LCD Group Limited, a China-based developer and
    manufacturer of flat panel displays and modules. 

 
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release. 
Contacts:
Spackman Equities Group Inc.
Floria Lin
Investor Relations
+852 3902 3287
info@spackmanequities.com
www.spackmanequities.com
 
 
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