SK hynix Effectively Becomes the Largest Shareholder of Japan's Kioxia

SK hynix-Backed SPC Becomes Largest Shareholder

SK hynix has effectively become the single largest shareholder of the Japanese semiconductor company Kioxia (formerly Toshiba Memory). This is a result of a special purpose company (SPC), in which SK hynix has invested, taking the position of Kioxia’s largest shareholder.

View of SK hynix headquarters in Icheon-si, Gyeonggi-do on July 29. Photo by Yonhap News

According to Bloomberg News on August 11, Kioxia Holdings announced that its former parent company Toshiba’s stake had decreased from 14.48% to 14.12% as of August 3. As a result, 'BCPE Pangea Cayman 2,' the SPC established by Bain Capital, has become the new largest shareholder with a 14.19% stake.

According to Kioxia's annual report, SK hynix holds convertible bonds (CBs) that would allow it to secure virtually all the voting rights of BCPE Pangea Cayman 2. Therefore, if SK hynix exercises these rights in the future, its influence over Kioxia could increase.

Kioxia also specified in its annual report that SK hynix, as a competitor, poses a potential conflict of interest risk due to this arrangement of rights.

SK hynix participated in the acquisition of Kioxia through a consortium led by Bain Capital in 2018. At the time, SK hynix pledged to keep its voting share in Kioxia under 15% until 2028 unless it receives approval from Kioxia.

This content was produced with the assistance of AI translation services.