SK hynix Says It Is Reviewing Additional Shareholder Returns

SK hynix is expected to return 80% of gains from selling part of its stake in Japanese NAND maker Kioxia to shareholders through a special dividend, a payout the South Korean chipmaker may outline with its third-quarter results Wednesday, Oct. 28.

The distribution is expected to be based on gains from the stake sales. The estimated per-share payment is about 15 times SK hynix’s annual regular dividend and 61 times a quarterly payment. Whether to pay it in installments remains under review.

SK hynix has not confirmed the payout. During its second-quarter earnings call, the company said it was reviewing additional ways to return capital to shareholders and planned to share details by year-end.

The potential distribution stems from SK hynix’s investment in Kioxia. The company joined a Bain Capital-led consortium in 2018 to acquire Toshiba’s NAND business, which took the Kioxia name in 2019. SK hynix partially sold its stake in both the first and second quarters this year, generating the gains tied to the proposed dividend.

The company may discuss the plan when it releases third-quarter results Wednesday, Oct. 28.