Bain Capital Exits Kioxia; Toshiba Regains Position as Largest Shareholder

Huo Xing Finance reports that on July 26, according to Korean media Daum, U.S. investment fund Bain Capital is expected to realize approximately ¥2.5 trillion in investment gains from the sale of its majority stake in Japanese storage chip company Kioxia, setting one of the highest returns on record for a private equity deal in Japan. With Bain Capital’s exit, Toshiba has regained its position as Kioxia’s largest shareholder with approximately 15% ownership; SK Hynix, through convertible bonds held via a special purpose company (SPC), has become the de facto second-largest shareholder with around 14% equity. However, as SK Hynix has not yet converted its convertible bonds into shares, it currently lacks formal voting rights and must pass antitrust reviews in multiple countries before conversion can be completed. Previously, SK Hynix invested approximately ¥395 billion in the relevant SPC via convertible bonds and pledged not to hold more than 15% of Kioxia’s voting rights before 2028. The market is closely watching how Kioxia’s complex ownership structure and potential changes in SK Hynix’s stake will become key variables in Japan’s strategic布局 for the semiconductor industry amid intensifying global competition in storage chips.