South Korea's Financial Supervisory Service announced that Japanese investment firms The Nexroc Group and SVCV had expressed their intention to launch a tender offer for JYP Entertainment. It said it would promptly launch an investigation if unfair trading is suspected.
On the 26th, South Korea's Financial Supervisory Service said that, following the announcement by Japanese investment firms The Nexroc Group and SVCV that they would pursue a tender offer for shares of JYP Entertainment, it was closely monitoring the transactions for any suspicious activity or violations of laws and regulations. It also indicated that, because no filing had been submitted, it was difficult to verify the bidder or funding details, and that the transaction could take time to reach completion.
Following the reports, JYP Entertainment commented that it had not received a proposal concerning the acquisition of shares, and the tender offer plan is expected to depend on progress in the official procedures. On the 26th, the parties had distributed press materials expressing their intention to launch a tender offer, but investors have been warned to pay close attention to share-price movements, as this was not a case in which a filing preceded the announcement.
In response, JYP's share price rose approximately 14% in after-hours trading on the 26th and closed more than 6% higher the following day, resulting in pronounced share-price volatility. According to the information provided, the tender offer is reportedly aimed at acquiring 25–50% of JYP's outstanding shares, with plans to begin the offer as early as November this year.
The Financial Supervisory Service said that distributing press materials and expressing an intention to launch a tender offer before submitting a tender offer filing, as in this case, was extremely unusual. The focus will now be on whether the identity of the bidder, the source of the funds and other details can be verified, while whether the transaction will actually be completed will continue to draw attention.