SK Hynix has stated that there are no confirmed plans for a special dividend of 16 trillion won, which would utilize profits from its investment in Japanese NAND flash maker Kioxia. The company plans to disclose additional shareholder return measures during its third-quarter earnings announcement on October 28.
According to a filing with the Financial Supervisory Service on October 26, SK Hynix said, "We are reviewing various shareholder return measures to enhance shareholder value, but nothing has been confirmed as of now."
Earlier reports indicated that SK Hynix was considering a special dividend of 16 trillion won, which represents 80% of the approximately 20 trillion won profit gained from the sale of its Kioxia shares. This amount exceeds last year's total annual dividend by seven times.
SK Hynix plans to finalize additional shareholder return measures through a board resolution and will announce them during its third-quarter earnings report on October 28. The date for a related re-disclosure has also been set for the same day.
In 2018, SK Hynix invested about 4 trillion won in Kioxia through a consortium led by Bain Capital. This year, the company began recovering its investment through the sale of Bain Capital's shares and currently holds convertible bonds linked to its Kioxia stake.
SK Hynix has been exploring ways to expand shareholder returns using cash generated from the semiconductor boom. During its second-quarter earnings conference call, the company stated, "We are reviewing various methods for additional shareholder returns and will share specific plans within the year."
When considering an initial public offering (IPO) for its U.S. NAND subsidiary Solidigm, the company highlighted the potential for increased investment and shareholder returns through external capital. However, on October 23, it decided to halt the IPO review due to market conditions and stock price trends.
* This article has been translated by AI.
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