SK hynix’s Icheon campus in Gyeonggi Province, South Korea. Photo courtesy of SK hynix
Aug. 11 (Asia Today) — SK hynix has effectively become the largest shareholder in Japanese memory chipmaker Kioxia after Toshiba’s ownership stake declined, although the South Korean company remains limited in its ability to directly influence management.
Kioxia disclosed Tuesday that Toshiba’s stake had fallen from 14.48% as of July 31 to 14.12%.
The change made BCPE Pangea Cayman 2, a special-purpose company under Bain Capital, Kioxia’s largest shareholder.
SK hynix previously invested in the Bain-related company through convertible bonds.
Those bonds can be converted into voting rights associated with the investment vehicle.
SK hynix participated in a Bain Capital-led consortium that acquired Kioxia in 2018.
As part of the investment arrangement, SK hynix agreed to keep its voting stake in Kioxia at 15% or less through 2028 unless Kioxia approves a higher level.
That structure means SK hynix cannot immediately exercise direct management control over Kioxia despite its effective position through the investment vehicle.
The change nevertheless carries symbolic and strategic importance.
SK hynix now has an indirect position associated with the largest shareholder of one of the world’s major NAND flash memory manufacturers, potentially increasing its relevance as the global memory market continues to consolidate and restructure.
Any attempt to expand direct control, however, would likely face additional procedural hurdles.
Competition authorities in multiple jurisdictions could require merger or investment reviews depending on the structure of any future transaction.
— Reported by Asia Today; translated by UPI
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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260811010003689
