JYP Entertainment has stated in a regulatory filing that it has not received any proposal to acquire its shares.
The company behind Stray Kids and TWICE submitted the filing to the Korea Exchange on Tuesday (October 27).
It came a day after The NEXROC Group and SVCV, Inc. said they were considering a tender offer for between 25% and 50% of JYP’s issued shares, as MBW reported.
Also on Tuesday, South Korea’s Financial Supervisory Service (FSS) warned investors about the plan and said it would investigate if it suspected unfair trading.
“With regard to the acquisition of the company’s shares reported in the media, we wish to inform you that the company has not received any proposal,” JYP said in the filing (translated).
The filing names Vice President and Chief Financial Officer Byun Sang-bong as the official responsible for the disclosure.
It formalizes a statement JYP gave to Korean media on Monday (October 26), after NEXROC and SVCV’s press release was distributed.
“It is highly unusual to publicly express an intention to make a tender offer by distributing a press release before submitting a tender offer registration statement,” the FSS said (translated).
“It is highly unusual to publicly express an intention to make a tender offer by distributing a press release before submitting a tender offer registration statement.”
South Korea’s Financial Supervisory Service
Noting that share price volatility had increased since the reports, the FSS said it was “closely monitoring for abnormal trading and violations of laws and regulations” and would “promptly launch an investigation” if unfair trading was suspected.
The FSS added: “In a situation where a tender offer registration statement has not been submitted, it is difficult to verify information about the tender offeror and its funds, and there is a possibility that the transaction will not be carried out. Investors should be mindful of the risk of losses from share price fluctuations.”
According to the FSS, JYP’s share price climbed as high as 44,000 won in after-hours trading on Monday, then fell as low as 36,150 won during Tuesday’s session.
The stock closed Tuesday at 38,450 won, up 6.81% from Monday’s regular-session close of 36,000 won.
NEXROC describes itself as a Japanese investment group, though its website calls it “Japan and China-based” and lists SVCV as the group’s cultural holding company.
The pair have said they aim to begin the tender offer on November 20, at a 30% premium to a reference share price.
“Detailed terms, including the method for calculating the reference share price and the final purchase price, will be finalized at a later date,” NEXROC and SVCV said in their press release, as quoted by Korean media (translated).
A stake of 25% or more would exceed the holding of JYP founder and Chief Creative Officer Park Jin-young, who owns 15.37% of the company.
The FSS warning comes amid reports in Korean and international media questioning whether NEXROC can fund a bid of that size.
Douglas Kim, an independent analyst who writes on research platform Smartkarma, told Reuters that a bidder should only launch a tender offer once it has the financial resources to support it.
Kim said that tolerating announcements of this kind “could set a bad precedent in the Korean equity markets.”
Reuters also cited data platform PitchBook, which lists NEXROC as an early-stage, venture capital-backed company and puts its latest funding round at USD $25 million.
Lee Nara, an analyst at Sangsangin Securities in Seoul, told the news agency: “There are many doubts about what the company is.”
Separately, Money Today reported on Tuesday that a Form D filed with the US Securities and Exchange Commission on October 20 by NEXROC SVCV, Inc. (formerly SVCV Group Inc.) lists the entity’s annual revenue in a range of USD $1 million to $5 million.
The October filing also reports a USD $50 million securities offering, with the number of investors recorded as zero. An earlier Form D, filed on September 18 for USD $25 million, likewise shows no investors.
Money Today said Delaware state records list the corporate status of SVCV Group Inc., which it described as NEXROC’s parent entity, as forfeited.
The entity’s status was revoked in October 2025 after its registered agent resigned, and it had left USD $595.04 in state taxes unpaid, the outlet added.
NEXROC’s website states that the group and its trade names are incorporated in Delaware, Japan, and Guernsey.
Money Today reported that no registered corporation or branch for NEXROC could be found on the corporate number website of Japan’s National Tax Service or with Japan’s Financial Services Agency.
In 2023, HYBE and Kakao both launched tender offers during a contest for control of SM Entertainment.
HYBE’s offer for an additional 25% of SM fell short, with only 233,817 shares tendered.
Kakao followed with an offer of 150,000 won per share for a 35% stake, in a deal worth up to 1.25 trillion won (around USD $960 million at the time).
JYP reported revenue of 183.1 billion won for the second quarter of 2026, down 15.1% year-over-year.
Its net profit for the quarter fell 40.3% year-over-year to 21.7 billion won.
Earlier this month, NEXROC said it would launch tender offers for two listed life insurers – one in the US and one in Australia – by November 10, without naming either company.
According to Money Today, no listed life insurer had made a related disclosure to the Australian Securities Exchange.
As of Tuesday, NEXROC and SVCV had not filed a tender offer registration statement with Korean authorities.Music Business Worldwide
