16 trillion won big red envelope! SK Hynix (SKHY.US) plans to distribute 80% of Kioxia's shareholding revenue to “haopai” shareholders

The Zhitong Finance App learned that according to reports, SK Hynix (SKHY.US) plans to return about 80% of the proceeds from reducing its holdings of Japan's Kioxia Holdings Company to shareholders by paying a special dividend of about 16 trillion won (about 12 billion US dollars).

On Monday, the media quoted an anonymous investment bank source as saying that the South Korean chipmaker is expected to announce the dividend when announcing the third quarter results on October 28.

According to reports, SK Hynix expects to earn about 20 trillion won from the sale of its Kioxia investment in the first and second quarters.

A SK Hynix spokesperson declined to comment.

According to information, in 2018, a consortium led by Bain Capital and including SK Hynix acquired Toshiba's original storage business for $18 billion. This investment enabled SK Hynix to indirectly hold an interest in one of the biggest rivals in the NAND flash memory sector, and increased significantly in value after Kioxia's 2024 Tokyo listing and subsequent stock price increases.

Earlier this year, Bain Capital confirmed to Bloomberg that it had sold all of its holdings in flash chip maker Kioxia. As part of Bain's disposal plan, the South Korean company withdrew from the investment without disclosing the size of its one-time benefit.

SK Hynix holds Kioxia bonds, and these bonds can be converted into the right to vote in almost all of Kioxia's investment instruments holding 14% of Kioxia's shares.