SK Hynix will announce its third‑quarter earnings on Wednesday, October 28, and will simultaneously disclose its shareholder‑return plans. The company has confirmed that it is reviewing several options for returning capital to shareholders, but it has not yet specified the amount or form of any special dividend. According to a Reuters report, SK Hynix responded to a query from the Korea Exchange on Monday, stating that it is considering different shareholder‑return schemes and will present them together with the quarterly results. The announcement prompted a near‑3 % rise in the stock price, but the shares closed down 0.16 % at 1,275,000 KRW. The speculation that the company will use proceeds from the sale of its stake in Kioxia (formerly Toshiba Memory) to fund a special dividend has been amplified by Korean media. The Korea Dong-a Ilbo reported that SK Hynix sold its Kioxia holdings in the first two quarters of the year, generating an estimated profit of 20 trillion KRW (about 1,186 billion HKD) after deducting the original investment cost. If a special dividend of 16 trillion KRW (approximately 948 billion HKD) were issued, it would represent roughly 80 % of that profit. SK Hynix first invested in the memory business that became Kioxia in 2018, participating in a consortium led by Bain Capital. The company acquired shares and convertible bonds through a special‑purpose vehicle, investing a total of about 4 trillion KRW. However, the firm has not yet disclosed the specific details of the recent sale of its Kioxia stake.
Article source: Sing Tao Electronic Daily | Image credit: Sing Tao Electronic Daily