Toshiba raises US$2.77B selling Kioxia shares, ceding top-shareholder spot
What's the deal? ToshibaDealroom has a profile for this one. Try Dealroom → has raised about US$2.77B in cash by selling part of its stake in NAND flash memory maker Kioxia HoldingsDealroom has a profile for this one. Try Dealroom →. Its holding fell to 12.84% from 14.06% as of September 7, according to an amended report Toshiba filed with the Kanto Local Finance Bureau, cited by Nikkei.
Why now? Kioxia's stock rallied from April and hit a record high of US$866.9 in late June, giving Toshiba a window to cash out. The 1.22 percentage-point stake it sold is worth about US$2.77B.
What changes? An earlier sale in August had already cut Toshiba's holding to 14.06% from 15.1%, handing the largest-shareholder title to BCPE Pangea Cayman 2Dealroom has a profile for this one. Try Dealroom →, a special purpose company set up by Bain CapitalDealroom has a profile for this one. Try Dealroom →. SK hynixDealroom has a profile for this one. Try Dealroom → holds convertible bonds issued by that vehicle; converting them would grant voting rights, effectively making SK hynix Kioxia's top shareholder.
What's the endgame? Toshiba has sold down its Kioxia stake seven times between July 15 and early August to fund investment in its core business. It is pursuing a relisting in fiscal 2028.
The backstory: Kioxia was spun off from Toshiba's memory division. The parent was undone by its $5.4 billion acquisition of US nuclear firm WestinghouseDealroom has a profile for this one. Try Dealroom → in 2006, which — after setbacks including the Fukushima accident — inflicted losses of more than US$5.38B. Facing a cash crunch, Toshiba sold its most valuable assets before being acquired by Japan Industrial PartnersDealroom has a profile for this one. Try Dealroom → in 2023 and delisted.
By the numbers: Toshiba's non-operating profit for the April-June quarter surged to US$48.8B, from US$1.18B a year earlier. Valuation gains tied to Kioxia accounted for US$48.7B of that.
The signal: Bain Capital is also selling Kioxia shares, and the memory maker is weighing raising at least $10 billion through a US ADR listing, per Bloomberg. Kioxia's stock has since reversed from its June peak, closing at US$389.2 on September 14 — a reminder that even soaring memory valuations can turn quickly.
Read more: en.sedaily.com
Image credit: gruntzooki
