SK hynix Reportedly Becomes Largest Shareholder of Japan's Kioxia

According to ZDNET citing Nikkei, Kioxia has disclosed that its largest shareholder has changed from the former Toshiba to a special purpose company named BCPE Pangea Cayman 2 (hereinafter referred to as SPC2). SK hynix invested in SPC2 through convertible bonds (CBs). From the 15th of last month to the 3rd of this month, Toshiba reduced its stake to 14.06% through a total of seven transactions. As a result, SPC2, which holds a 14.19% stake in Kioxia, became the company's largest shareholder. It is reported that SK hynix invested approximately KRW 4 trillion in Kioxia in 2018 through two special purpose companies (SPCs). Among them, all shares of SPC1, which was jointly established with Bain Capital and other institutions, were sold in June last year after Bain Capital withdrew its investment. SK hynix continues to hold SPC2, with its investment amounting to approximately KRW 1.3 trillion. If these convertible bonds are converted into shares, SK hynix will become a shareholder of Kioxia and possess voting rights.