Two Japanese investment groups said they plan to acquire up to 50% of JYP Entertainment as early as next month, sending the K-pop agency's shares sharply higher. JYP said it has received no such proposal.
The NEXROC Group and SVCV, Inc. said in a press release on the afternoon of the 26th that they would pursue a stake in JYP. The two firms said they plan to launch a tender offer as early as November, targeting 25% to 50% of JYP's outstanding shares.
The companies said they are considering a tender offer price set at a 30% premium to a reference share price, adding that details including how the reference price will be calculated and the final purchase price will be determined later.
Following the announcement, JYP shares surged 14.38% from the previous close to 42,150 won in after-hours trading on the 26th. JYP, however, said it had received no proposal regarding the acquisition of a stake in the company.
Despite the company's denial, the stock held on to most of its gains, though it gave back some ground from Monday's after-hours high. JYP was trading at 38,450 won as of 8:45 a.m. on the 27th, up 6.67% from the previous regular session's close, according to Nextrade.