SK Hynix Inc. intends to distribute roughly 80% of the proceeds from reducing its holdings in Japan's Kioxia Holdings Corp. back to shareholders via a special dividend totaling approximately 16 trillion won, equivalent to $12 billion, according to a report by the DongA Ilbo newspaper.

The South Korean semiconductor manufacturer is anticipated to reveal this payout alongside its third-quarter financial results on October 28, the publication stated on Monday, referencing anonymous sources from the investment banking sector.

SK Hynix is projected to have realized around 20 trillion won in profits from divesting its Kioxia investment during the first half of the year, the report indicated.

A representative for SK Hynix chose not to provide any statement.

Back in 2018, a consortium led by Bain that included SK Hynix Inc. acquired the former memory business of Toshiba Corp. for $18 billion. This transaction provided SK Hynix with indirect involvement in one of its primary competitors in NAND flash memory, and the value increased significantly after Kioxia's Tokyo stock market debut in 2024 and the subsequent price surge.

Bain Capital informed Bloomberg News earlier this year that it had divested its entire holding in the flash memory chip producer Kioxia. The South Korean firm did not reveal the magnitude of its one-time profit when it withdrew from the investment as part of Bain's sale.

SK Hynix possesses Kioxia bonds that are convertible into essentially all the voting rights of an investment entity that controls 14% of Kioxia.