Questions for Nexrock Group, which launched a 'JYP tender offer'... 'Nothing is done properly'

From funding capabilities to website details, nothing adds up.The Financial Supervisory Service is also keeping a close eye.Questions are mounting about The NEXROC Group and SVCV, which have announced a tender offer for JYP Entertainment, claiming to be a Japanese investment group. /THE FACTDB, JYP Entertainment logo[THE FACT|Reporter Choi Hyun-jung] Doubts are growing surrounding The NEXROC Group and SVCV, which have claimed to be a Japanese investment group and announced plans to launch a tender offer for JYP Entertainment shares.On the 26th, Nexroc Group and SVCV released a press release stating they are considering a tender offer for 25-50% of JYP Entertainment's issued shares. Notably, they revealed they are considering a price that includes a 30% premium over the benchmark stock price and aim to commence the tender offer on November 20th, drawing significant industry attention.In response, JYP Entertainment immediately stated, "We have not received any acquisition proposals," but this did not deter public interest. JYP Entertainment's stock, which closed at 36,000 won on the 26th, surged to 44,000 won during after-hours trading on the Nextrade aftermarket. It closed at 38,450 won on the 27th and traded in the 39,000 won range on the morning of the 28th.However, following the announcement of the tender offer plan, questions about the true nature and funding capabilities of Nexroc Group and SVCV have also intensified.Typically, to proceed with a tender offer, a tender offer registration statement detailing specific conditions such as the purchase price, quantity, and period must be submitted to the financial authorities, and a public notice of the tender offer must be made according to legal procedures. However, they announced their specific tender offer plans before submitting the tender offer registration statement.Consequently, some have raised suspicions of intentional information dissemination to manipulate stock prices. However, it has not been confirmed whether actual market manipulation or other unfair trading practices occurred.Furthermore, according to the U.S. Securities and Exchange Commission's (SEC) electronic disclosure system (EDGAR), a filing for a private placement of securities (Form D) submitted on the 20th by 'NEXROC SVCV, Inc.', a Nexroc-related entity, indicates an annual revenue range of $1 million to $5 million (approximately 1.3 billion to 6.6 billion won). However, this figure was self-reported by the entity and does not represent the total revenue of the entire Nexroc Group.The entity stated in its filing that it had fully sold securities worth $50 million, but the number of investors was listed as zero. Adding to this, the Google Maps location linked from the Nexroc Group's website points to a location in the Pacific Ocean, and the phone number registered on Google Maps differs from the one listed on the website, revealing further circumstances that cast doubt on its existence.Moreover, the controversy has escalated with the revelation that Erich S. Lamas, who was listed as a director of a Nexroc-related entity, filed a civil lawsuit for fraud against Cube Entertainment in the U.S. District Court for the Southern District of New York on July 19th (local time), only to voluntarily withdraw it on August 10th. The court approved the withdrawal on the 18th of the same month.As the controversy surrounding Nexroc Group and SVCV grows, the Financial Supervisory Service has also stepped in. On the 27th, the Financial Supervisory Service announced that it is closely monitoring for any unusual transactions or violations of regulations related to their announcement of the tender offer for JYP Entertainment.In particular, the Financial Supervisory Service deemed it highly unusual to announce the intention of a tender offer through a press release before submitting the tender offer registration statement and stated its intention to promptly launch an investigation if unfair trading is suspected.laugardagr@tf.co.kr[Entertainment Desk | ssent@tf.co.kr]