16 trillion Korean won "big dividend"! SK hynix (SKHY.US) plans to distribute 80% of Kioxia stake earnings generously to shareholders

According to Golden Financial APP, it has been reported that SK hynix (SKHY.US) plans to distribute a special dividend of approximately 16 trillion Korean won (about $12 billion), returning around 80% of the proceeds from reducing its stake in Japanese company Kioxia Holdings to shareholders.

The media outlet, citing anonymous investment banking sources on Monday, said the Korean chip manufacturer is expected to announce the dividend distribution when it releases its third-quarter results on October 28.

Reports indicate that SK hynix expects to gain around 20 trillion Korean won in proceeds from selling its Kioxia investment in the first and second quarters.

An SK hynix spokesperson declined to comment.

It is understood that in 2018, a consortium led by Bain Capital, including SK hynix, acquired Toshiba’s former storage business for $18 billion. This investment gave SK hynix indirect equity in one of the largest competitors in the NAND flash memory sector, and its value increased significantly after Kioxia’s 2024 Tokyo listing and the subsequent rise in share price.

Earlier this year, Bain Capital confirmed to Bloomberg that it had sold its entire stake in flash memory chip maker Kioxia. As part of Bain's divestment plan, the Korean company did not disclose the size of its one-time gain when exiting the investment.

SK hynix holds bonds of Kioxia that can be converted into rights to almost all voting rights of an investment vehicle that owns 14% of Kioxia shares.