SK Hynix's Investment SPV Becomes Largest Shareholder of Kioxia

SK Hynix's investment special purpose vehicle, BCPE Pangea Cayman 2, has become the largest shareholder of Japan's Kioxia Holdings. The ownership ratio is 14.19% based on voting rights. According to Kioxia's stock information disclosure on the 11th, the largest shareholder has changed from Toshiba to BCPE Pangea Cayman 2. Toshiba sold its shares from July 15 to August 3, reducing its ownership ratio from 15.10% to 14.06%. SK Hynix did not directly acquire Kioxia shares but invested approximately 4 trillion won through two special purpose companies in 2018, with BCPE Pangea Cayman 2's investment amounting to about 1.3 trillion won. Kioxia stated in its securities report for the fiscal year ending March 2026 that SK Hynix holds convertible bonds related to 77.4 million shares of Kioxia common stock through BCPE Pangea Cayman 2. At the time of the report, BCPE Pangea Cayman 2's ownership ratio was 14.17% based on issued shares and 14.19% based on voting rights. The change in the largest shareholder does not lead to a direct increase in SK Hynix's management influence, as Kioxia's report includes an agreement stating that SK Hynix cannot hold more than 15% of the total voting rights without the company's consent until 2028. If the convertible bonds are converted into shares, SK Hynix can exercise voting rights through the special purpose vehicle. Kioxia is Japan's largest NAND flash company and competes with SK Hynix in the memory semiconductor market.