Park Jin-young Could Lose Control of JYP If a Nov. 20 Tender Offer Lands

JYP Entertainment says it has never received an acquisition proposal, even as two Japanese-backed investors say they are targeting 25% to 50% of its outstanding shares. The company gave that statement on the 26th, after a report that NEXROC Group and SVCV Co., Ltd. are working toward a tender offer.

The messy part is the gap between the two accounts. The investors say they are reviewing the procedures needed to launch the tender offer on November 20. JYP says nobody has sent it anything.

The size of the target is the point. Chief Creative Officer Park Jin-young and his related parties hold around 15% combined, so even the low end of the range would top their stake.

How the process is meant to work

According to the report, the two firms plan to deliver a private letter of intent to JYP before going public. That would open a 30-day negotiation window. If the sides fail to agree, the investors would then decide whether to proceed with the tender offer and on what terms.

That sequence may explain JYP's wording. A private letter that has not yet been sent is not a proposal received.

Markets reacted anyway. JYP's share price climbed as high as 44,000 won in after-market trading following the report.

What theqoo users said

1. 1

   Park Jin-young said he'd built a "system" for the company, then spent years chasing his own artist career in mesh outfits. This was predictable, and the commenter just wants him to run the company.

2. 2

   Is it time to leave JYP?

3. 3

   The whole "declaration of war" framing feels really off-putting.

4. 4

   Why the obsession with Japan? Is it some kind of Stockholm syndrome?

5. 5

   This is oba.

6. 6

   JYP nearly got taken over by LOEN back in 2014, so the commenter assumes the company has prepared well against this by now.

7. 7

   Cut the nonsense. Stop latching onto Korea, quit looking for a free ride, and learn to stand on your own two feet for once.

8. 8

   The commenter bets JYP will get acquired.

9. 9

   The commenter hates this. Japan and China are now trying to take over K-pop, will milk it for all it's worth, then go chase J-pop or C-pop instead. Toxic stuff.

10. 10

    The commenter is seriously annoyed.