Svmuu News: U.S. investment firm Bain Capital, through the sale of a majority stake in Japanese memory chip maker Kioxia, is expected to generate approximately 2.5 trillion yen (about 22 trillion won) in investment returns, setting one of the highest return records in Japan’s private equity (PE) sector.
With Bain Capital’s exit, Toshiba has once again become Kioxia’s largest shareholder, holding approximately 15%; SK Hynix has become the de facto second-largest shareholder through convertible bonds held by a special purpose company (SPC), representing approximately 14% of the shares. However, since SK Hynix has not yet converted the convertible bonds into shares, it currently does not hold formal shareholder voting rights; the conversion can only be completed after passing antitrust reviews in various countries.
SK Hynix previously invested approximately 395 billion yen in the relevant SPC in the form of convertible bonds and has committed not to hold more than 15% of Kioxia’s voting rights until 2028. The market is watching closely as, amid intensifying global competition in the memory chip sector, Kioxia’s complex equity structure and potential changes in SK Hynix’s shareholding are set to become key variables in Japan’s strategic semiconductor industry landscape. (Daum)