Kioxia's Shareholder Restructuring: SK Hynix Becomes De Facto Second Largest Shareholder

According to ME News, on July 26 (UTC+8), U.S. investment firm Bain Capital is expected to realize approximately ¥2.5 trillion (about ₩22 trillion) in investment gains by selling a 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, holding approximately 15% of the equity. SK Hynix, through convertible bonds held via a special purpose company (SPC), has become the de facto second-largest shareholder with around 14% ownership. However, since SK Hynix has not yet converted its convertible bonds into shares, it currently lacks formal voting rights; conversion will require approval from antitrust regulators in multiple countries. Previously, SK Hynix invested approximately ¥395 billion in the SPC via convertible bonds and pledged not to hold more than 15% of Kioxia’s voting rights before 2028. As global competition in the memory chip market intensifies, Kioxia’s complex ownership structure and potential changes in SK Hynix’s stake are poised to become critical factors in Japan’s strategic semiconductor industry planning. (Source: ODAILY)