SK hynix has become the largest shareholder in Japanese NAND flash manufacturer Kioxia. This shift follows a reduction in equity holdings by Toshiba.
A Bain Capital-led investment vehicle now holds a 14.19% stake in Kioxia. SK hynix serves as the primary investor in this vehicle through convertible bonds. Toshiba’s remaining stake has decreased to 14.06%.
The South Korean chipmaker currently lacks immediate control or direct voting rights. To exercise voting power, SK hynix must convert its bonds into shares, a move requiring approval from global competition regulators.
This development stems from an investment structure established in 2018. Under that agreement, SK hynix cannot exceed 15% of voting rights until 2028 without Kioxia's consent.