How Will SK Hynix React to Bain Capital’ Joining in Toshiba Acquisition Consortium

It has been found that Bain Capital is likely to join an American-Japanese consortium in place of Kohlberg Kravis Roberts (KKR), a U.S.-based private equity fund, with regard to the acquisition of the semiconductor division of Toshiba.

Earlier, Bain Capital formed a consortium with SK Hynix and so on and joined the bidding. Bain Capital and SK Hynix offered to acquire 51% of the shares of the division with the rest held by Toshiba or the management of Toshiba.

The American-Japanese consortium consists of KKR, the Innovation Network Corporation of Japan, the Development Bank of Japan, Western Digital, etc. This consortium has been regarded as a promising candidate in that the Japanese government indirectly participates in it.

According to industry sources, SK Hynix becomes more likely to acquire the division with its consortium partner Bain Capital if Bain Capital takes the place of KKR. Still, Bain Capital has not yet announced whether it will join the American-Japanese consortium with SK Hynix or not. “Even if Bain Capital and SK Hynix join this consortium, the influence of SK Hynix on the management of the semiconductor division of Toshiba will be limited because their shareholding ratio is relatively low in it,” one of them pointed out.