South Korea’s Daum reported on July 26 that Bain Capital is expected to realize about 2.5 trillion yen in investment gains after selling most of its stake in Japanese memory chip maker Kioxia, in what would rank among the most profitable private equity deals in Japan. Following Bain’s exit, Toshiba has returned as Kioxia’s largest shareholder with an approximately 15% stake. SK Hynix has effectively become the second-largest shareholder through convertible bonds tied to a special purpose company, representing roughly 14% of the shares. The company does not yet hold formal voting rights because the bonds have not been converted into equity. Any conversion would also require antitrust clearance in multiple jurisdictions. Daum said SK Hynix had previously invested about 395 billion yen in the relevant SPC through convertible bonds and had pledged not to hold more than 15% of Kioxia’s voting rights before 2028. The report said the market is watching how Kioxia’s complex ownership structure and any future shift in SK Hynix’s stake could affect Japan’s semiconductor strategy as competition in the global memory market intensifies.
According to a July 26 report from South Korea’s Daum, U.S. investment fund Bain Capital is expected to book about 2.5 trillion yen in gains after selling most of its stake in Japanese memory chip company Kioxia. The figure would place the deal among the highest-return private equity cases in Japan.
With Bain Capital exiting, Toshiba has once again become Kioxia’s largest shareholder, holding about 15%. SK Hynix, through convertible bonds linked to a special purpose company, has effectively become the company’s second-largest shareholder, with exposure equivalent to roughly 14% of the shares.
SK Hynix has not converted those bonds into stock, so it does not currently hold formal shareholder voting rights. The conversion process would also require antitrust approval across multiple jurisdictions before it can be completed.
Daum said SK Hynix previously invested about 395 billion yen in the relevant SPC through convertible bonds and pledged that it would not hold more than 15% of Kioxia’s voting rights before 2028.
The report added that the market is watching Kioxia’s complex ownership structure and the possibility of changes in SK Hynix’s stake as competition in the global memory chip industry becomes more intense. Those shifts could become an important variable in Japan’s semiconductor strategy.
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