Major Shareholder Shift in Kioxia: Bain Reduces Stake for Cash-Out, SK Hynix Rises to Second Largest Shareholder and May Take the Top Spot

(1) Bain Capital recently disclosed through a substantial shareholding report that it has sold most of its shares in Kioxia, cashing out approximately 2.5 trillion yen (about 22 trillion KRW). Previously, in 2018, Bain acquired 55% of Kioxia (formerly Toshiba Memory) through four special-purpose companies. After the sale, its shareholding ratio dropped significantly. (2) Currently, Toshiba has become Kioxia’s largest shareholder with a 15% shareholding ratio, while a special-purpose company controlled by SK hynix has risen to the second-largest shareholder position with a 14% shareholding ratio. However, SK hynix has not yet converted its convertible bonds into stock, so it does not currently have actual voting rights. To become a shareholder with voting rights, it would still need to pass multi-jurisdictional antitrust reviews. (3) Some observers predict that, since the current largest shareholder Toshiba is also continuously reducing its stake, SK hynix may eventually become the largest shareholder of Kioxia in the future.