The de facto largest shareholder of Kioxia, a Japanese NAND flash memory manufacturer, has changed to SK hynix. Following the reduction of Toshiba's stake, the SPC secured a stronger position, making the exercise of its convertible bonds after regulatory review the focus of attention.
The de facto largest shareholder of Kioxia, a Japanese NAND flash memory manufacturer, has changed to an SPC connected to SK hynix. The SPC, which holds part of Kioxia's shares, now ranks first by voting-rights stake, while Toshiba has effectively given up its position as the former largest shareholder. The SPC's ownership ratio is attracting attention, partly because of the impact of non-operating income from investments in the second quarter.
According to the Nihon Keizai Shimbun, the position of largest shareholder changed from Toshiba to BCPE Pangea Cayman2 (BCPE Pangea Cayman2). The SPC holds 77.4 million Kioxia shares, giving it a 14.19% stake on a voting-rights basis. Toshiba sold shares on the market 7 times between 15 July and 3 August, reducing its stake from 15.10% to 14.06%. As a result, its stake became almost equal to that of the SPC, and Toshiba fell to second place.
Depending on the conversion of the convertible bonds, SK hynix could become Kioxia's de facto largest shareholder. Because the convertible bonds have not yet been converted into shares, they do not currently carry voting rights, but if the conversion takes place, the SPC could secure most of the underlying stake. Antitrust reviews and foreign investment-related procedures in various countries will be required, and the actual conversion into shares is expected to take time.
Kioxia began operations as Toshiba Memory in 2019 and retained its position as largest shareholder even after its spin-off and sale in 2018. In recent years, its share price and corporate value have risen amid expanding investment in AI data centers and growing demand for high-capacity SSDs. Bain Capital has been selling its stake in stages since last year, and SK hynix is believed to have generated substantial earnings during this process.