SK hynix emerges as Kioxia’s de facto second-largest shareholder

According to Nikkei on Sunday, Bain Capital disposed of most of its Kioxia holdings over the past year, generating about 2.5 trillion yen ($14.9 billion) in proceeds, the largest investment gain ever recorded by a private equity fund in Japan.

Following the sale, Toshiba regained its position as Kioxia’s largest shareholder with a 15 percent stake. A special purpose company (SPC) holding about 14 percent of Kioxia’s shares has become the second-largest shareholder, and SK hynix is viewed as its effective owner because it holds convertible bonds that can be exchanged for equity in the SPC.

SK hynix invested 395 billion yen in Kioxia in 2018, allocating 266 billion yen to an SPC established for financial investment and the remaining 129 billion yen to another SPC focused on governance participation.