Japanese investment group eyes up to 50% stake in JYP, agency denies receiving proposal

Two Japanese investment companies announced plans to acquire up to 50 percent of K-pop agency JYP Entertainment, but JYP denied receiving any related proposals.

Tokyo-based investment company The Nexroc Group and its subsidiary SVCV said in a press release Monday that they planned to acquire a stake in JYP Entertainment. The companies said they could launch a tender offer as early as November, aiming to acquire between 25 percent and 50 percent of JYP's outstanding shares.

The companies added they are considering a tender offer price 30 percent above a benchmark share price. Details, including how the benchmark price would be calculated and the final offer price, have yet to be determined.

JYP Entertainment, however, said, “We have not received any proposals related to the acquisition of our shares.”

Following the announcement of the acquisition plan, JYP Entertainment shares reached 42,150 won ($31.82) in Monday's after-hours trading, up 14.38 percent from the regular-session close. JYP’s market capitalization stood at around 1.5 trillion won, making a 50 percent stake worth approximately 750 billion won.

JYP Entertainment shares once traded at 40,150 won, up 11.53 percent from the previous session on Tuesday morning, before closing at 38,450 won, up by 6.81 percent.

BY JEONG HYE-JEONG [[email protected]]