SK Hynix Weighs $12B Special Dividend From Kioxia Exit Gains

SK Hynix is said to be planning a special dividend of about 16 trillion won, around $12 billion, drawn from the gains on its exit from a stake in Japanese NAND maker Kioxia. Bloomberg reported the figure after South Korea's Dong-A Ilbo broke the story. Full details are expected alongside the chipmaker's third-quarter earnings on October 28.

By the Dong-A Ilbo math picked up across the Korean press, the distribution works out to roughly 23,000 won per share, nearly 15 times SK Hynix's annual fixed dividend and more than seven times its total 2.1 trillion won payout last year. According to The Korea Herald, the company is on track to return about 80% of the Kioxia proceeds to shareholders.

SK Hynix itself has not confirmed the number. The company said 'no decision has been made on a special dividend' and that it is 'reviewing various shareholder return measures, but nothing has been finalized.' The stock has nonetheless risen up to 3% for a second consecutive session, defying a broader AI selloff.

SK Hynix joined Bain Capital in buying into Kioxia back in 2018, via a vehicle called SPC 1. It fully divested its holdings during the first and second quarters of this year, booking net profits of about 20 trillion won after original investment costs.