BlockBeats reported on Aug. 11 that SK Hynix has indirectly become the largest shareholder of Japan's NAND flash maker Kioxia, through SPC2, a special purpose company it invested in. Kioxia disclosed that its largest shareholder has changed from Toshiba to BCPE Pangea Cayman2 (SPC2), which now holds 14.19% of the company.
Toshiba previously held 15.10% of Kioxia. After selling shares seven times between July 15 and Aug. 3, its stake fell to 14.06%, below SPC2's 14.19%.
In 2018, SK Hynix invested about 4 trillion won in Kioxia through two SPCs. SPC2, which the company still holds, accounts for about 1.3 trillion won of that amount, made through convertible bonds. If those bonds are converted into shares, SK Hynix could become a shareholder with voting rights at Kioxia.
Still, SK Hynix would need approvals under competition and antitrust rules in various countries before it can exercise voting rights. Japan's government may also decline to approve, citing the need to protect its domestic semiconductor supply chain. Direct influence by SK Hynix on Kioxia's management therefore remains unlikely for now.
Kioxia is Japan's largest NAND producer and ranks third in global NAND market share, behind Samsung Electronics and SK Hynix.