JYP Entertainment Denies Receiving Takeover Offer From Japan-Linked Group

JYP Entertainment has denied receiving an offer to acquire shares in the company following reports that a Japan-linked investment group was seeking to acquire shares in the K-POP agency with the aim of gaining management control.

"We have not received any proposal regarding the acquisition of our shares," the company said on the night of Oct. 26.

The reports centered on The NEXROC Group and SVCV Co., which were said to be seeking to acquire shares in JYP Entertainment. In a press release, the two companies reportedly said they were reviewing preparations for a tender offer, a public offer to buy shares directly from shareholders, with a target start date of Nov. 20.

The companies were reportedly aiming to acquire 25% to 50% of JYP Entertainment's outstanding shares. That would exceed the roughly 15% held by Chief Creative Officer Park Jin-young and his related parties. If the companies secure the shares as planned, the acquisition could affect control of JYP Entertainment.

The companies were also reportedly considering offering a 30% premium over a base share price. However, specific terms, including how the base price would be calculated and the final purchase price, have yet to be determined.

The investment group reportedly planned to send JYP Entertainment a private letter of intent before launching a tender offer, followed by 30 days of negotiations. If the two sides fail to reach an agreement, the group would decide whether to proceed with the tender offer and disclose further details.

Meanwhile, JYP Entertainment shares closed at 42,150 won (approximately $31.81) in after-hours trading on Oct. 26, up 14.38% from the regular session's closing price. The stock climbed as high as 44,000 won (approximately $33.21) at one point during the session.