SK Hynix to Become Kioxia’s Largest Shareholder Via 14.19% Bain Vehicle Stake
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SK Hynix is poised to become the largest shareholder in Japanese NAND flash maker Kioxia.
Bloomberg reported on August 10 that Kioxia said BCPE Pangea Cayman2, an investment vehicle set up by Bain Capital, became its largest shareholder with a 14.19% stake after Toshiba reduced its holding to 14.12% from 14.48%.
Kioxia’s annual report shows SK Hynix holds bonds that can be converted into most of the voting rights in the investment vehicle. That means SK Hynix has effectively secured the greatest influence over Kioxia, in the market’s view.
Kioxia said in the annual report, however, that SK Hynix’s rights could create a potential conflict of interest.
SK Hynix joined the Bain Capital consortium’s acquisition of Kioxia in 2018. Under the agreement, it committed not to hold more than 15% of voting shares without Kioxia’s consent through 2028.
