Key points
- NEXROC and SVCV announce plans to seek 25% to 50% of JYP Entertainment
- JYP Entertainment says it has received no acquisition proposal
- JYP shares jump as offer price and funding remain unclear
The NEXROC Group, which describes itself as a Japan-affiliated investment group, and its affiliate SVCV announced plans on October 26 to seek 25% to 50% of JYP Entertainment (035900), the K-pop agency behind TWICE and Stray Kids. JYP said that evening it had received no acquisition proposal.
In a press release sent to Korean media after Monday's market close, the companies proposed a tender offer, with a target start date of November 20. That would let shareholders sell directly to the buyer at a set price during a specified period. NEXROC and SVCV proposed a 30% premium but haven't chosen the reference price used to calculate it or provided proof of funding.
"Regarding today's report, we haven't received any proposal related to acquiring a stake in our company," JYP said Monday night.
NEXROC says it will first send JYP a non-binding letter of intent and seek about 30 days of negotiations, Edaily (이데일리) reported. If no agreement is reached, the group will decide whether to proceed with a tender offer and on what terms.
The release says no tender offer has begun. Its proposed price and schedule are tentative, and it makes no commitment to complete a deal. It also says the announcement does not imply support from JYP or its board.
Advisers question the early announcement
Merger advisers and brokerage officials questioned the early announcement, which disclosed proposed terms but no proof of funding, Money Today (머니투데이) reported. The paper estimated that buying half of JYP could cost as much as 750 billion won ($565.2M) at its current market value.
"Announcing a plan to submit a non-binding letter of intent, and the terms you hope to buy at, before anything else can push up the stock price without any substance behind it," a financial investment industry official told the paper. "Announcing it in advance, without a real funding commitment or agreement on specific terms, isn't very convincing."
A higher share price could also raise the eventual purchase cost, depending on the reference price and final terms NEXROC chooses.
Little is known about NEXROC
The Korean reports reviewed for this article don't name the people who run NEXROC or SVCV. NEXROC describes itself as a Japan-affiliated investment group, and SVCV as its culture and entertainment company. SVCV said on June 17 that it was getting ready to start operating in Japan, Sports Kyunghyang (스포츠경향) reported on October 27.
A NEXROC company profile, cited in the same report, says the group aims to acquire about 15 companies over five years, with its first acquisition in the first quarter of 2027. It doesn't identify that acquisition.
JYP isn't the only name in the release. Digital Daily (디지털데일리) reported that it also mentioned a separate tender offer for Avex, a large Japanese entertainment company. The paper put Avex's market value at more than 900 billion won ($678.2M).
JYP's stock had just hit a one-year low
The news came when JYP's stock was at its weakest in a year. It closed Monday at 36,000 won ($27.13) on the Kosdaq, its lowest close of the past 12 months. On October 27, 2025, it closed at 79,200 won ($59.68), so it had lost more than half its value. K-pop's four biggest agencies were all down more than half from their highs already in August.
After the release came out, JYP rose as high as 44,000 won ($33.16) in after-hours trading on Monday evening. On Tuesday, it opened 6.53% higher in Seoul and rose as much as 15.28% to 41,500 won ($31.27) in the first hour.
If the reference price were Monday's close, a 30% premium would put the offer at 46,800 won ($35.27), by our calculations. NEXROC hasn't said which price it'll use.
Founder Park Jin-young and related parties own about 15% of JYP. Even the low end of NEXROC's target, 25%, would be a bigger stake than theirs.
Meanwhile, NEXROC and SVCV hadn't said anything more after JYP's statement as of Tuesday morning, Digital Daily reported.
Quotes are translated from Korean. Won figures are converted at 1,327 won to the dollar, the Naver Finance rate on October 26, 2026.
