SK Hynix Becomes Kioxia's Effective Largest Shareholder
Kioxia said the Bain Capital vehicle holds 14.19% of its shares, while SK Hynix’s convertible bonds could give it voting control.
- On Monday, Kioxia reported that BCPE Pangea Cayman2 is now its largest stakeholder with a 14.19% share, an entity established by Bain Capital that effectively serves as an investment vehicle for SK Hynix.
- Toshiba reduced its stake in Kioxia to 14.12% last month after selling shares in the market, while SK Hynix originally invested about 3.9 trillion won in 2018 through two Bain Capital SPCs to acquire convertible bonds.
- According to Kioxia, SK Hynix holds bonds convertible into "substantially all" of the voting rights of BCPE Pangea Cayman2, though the company promised to keep its stake at or below 15 percent until 2028 without Japanese approval.
- In a regulatory filing, Kioxia cited potential conflicts of interest between competitors, listing SK Hynix's claim as a risk factor; under Japanese regulations, SK Hynix must undergo government review before converting bonds into voting shares.
- While SK Hynix is the de facto largest stakeholder, an industry official said it will be difficult to exercise meaningful management control over Kioxia, and Group Chairman Chey Tae-won noted no decision has been made on the investment's future use.
12 Articles
12 Articles
The largest shareholder of Japan's Kioxia has changed from Toshiba to BCPEE Pangea Cayman II, an SPC under Bain Capital. SK Hynix is assessed to have effectively secured controlling power as the largest shareholder, holding convertible bonds of the SPC. Toshiba's continuous sale of shares and the rise in Kioxia's value are the key factors behind this change in corporate governance.
(Seoul = Yonhap News) Reporter Hwang Jung-woo = Japanese memory semiconductor company Kioxia announced on the 3rd that its largest shareholder is the investment company 'BCPE Pangea Cayman 2'...
[Digital Daily Reporter Ko Seong-hyeon] A special purpose company (SPC) invested in by SK Hynix has become the largest shareholder of Japanese NAND flash manufacturer Kioxia. Since SK Hynix holds convertible bonds (CBs) that secure all voting rights of the SPC, it has effectively secured the status of the largest shareholder. According to data submitted by Kioxia to the Tokyo Stock Exchange's timely disclosure system, Toshiba, the former larges…
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