SK Hynix to announce shareholder return plans on Wednesday; shares rise up to 3%
It is said to be weighing a US$12 billion special dividend, funded by its Kioxia stake sale
SK Hynix is set to announce plans for a shareholder return on Wednesday, October 28, when the company releases its quarterly results. The South Korean chipmaker is reportedly considering a special dividend of approximately 16 trillion won, which is equivalent to about US$12 billion. This dividend would be funded by gains from selling its stake in Japanese memory chipmaker Kioxia.
SK Hynix invested around 4 trillion won in Kioxia in 2018 through a consortium of investors led by Bain Capital. However, SK Hynix has not disclosed the size of the one-off gain it received from the sale. The company continues to hold Kioxia bonds that can be converted into roughly 14% of Kioxia's shares. Despite investor pressure to return more of their excess cash through dividends or buybacks, SK Hynix has stated that it is "reviewing various shareholder return measures" and will reveal its decisions alongside third-quarter earnings.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 2 other outlets
- SK Hynix to announce steps to boost shareholder returns on Wednesday brecorder.com
- SK Hynix to announce steps to boost shareholder returns on Wednesday channelnewsasia.com
