SK Hynix to Become Kioxia’s Largest Shareholder via 14.19% Stake in Bain Vehicle
Summary
- Kioxia said Bain Capital investment vehicle BCPE Pangea Cayman2 became its largest shareholder with a 14.19% stake after Toshiba reduced its holding.
- According to Kioxia’s annual report, SK Hynix holds bonds convertible into most of the voting rights in that investment vehicle, leaving it effectively with the greatest influence over the company.
- Kioxia said in its annual report that SK Hynix’s rights were identified as a potential conflict of interest, and that the company had agreed not to hold more than 15% of voting shares without Kioxia’s consent through 2028.
Forecast Trend Report by Period
SK Hynix is poised to become the largest shareholder of Japanese NAND flash maker Kioxia.
Bloomberg reported on August 10 that Kioxia said BCPE Pangea Cayman2, an investment vehicle established 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 has led the market to view SK Hynix as effectively holding the greatest influence over Kioxia.
Kioxia also identified SK Hynix’s rights as a potential conflict of interest in the annual report.
SK Hynix joined the Bain Capital consortium’s acquisition of Kioxia in 2018. Under the agreement, it pledged not to hold more than 15% of voting shares without Kioxia’s consent through 2028.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.