Global Market: SK Hynix to assess shareholder protection over potential Solidigm listing

SK Hynix said on Thursday it will evaluate measures to protect its shareholders amid market concerns over a potential listing of its U.S. subsidiary Solidigm, Reuters reported.

The South Korean chipmaker said it was reviewing measures to strengthen its competitiveness, while stressing that it had not decided on Solidigm's future.

Read more: US stocks: Nasdaq rises while S&P, Dow dip as softer inflation cools Fed hike bets


Reuters reported last month that Solidigm was considering an initial public offering as early as next year that could value the U.S. subsidiary at up to $150 billion, citing people familiar with the matter.

SK Hynix said it would carefully assess the potential impact of any such move on existing shareholders and consider measures needed to protect their interests.

The company did not provide further details on the possible timing or structure of a Solidigm listing.

Read more: Global Market Today: Asian shares mixed as bond yields, oil keep investors on edge

A listing of Solidigm could potentially give SK Hynix access to additional capital while providing a separate market valuation for its storage business. However, the prospect of such a transaction has also prompted questions among investors about its implications for SK Hynix's existing shareholders and corporate structure, Reuters reported.

Solidigm, which focuses on data-centre and enterprise storage solutions, became a wholly owned subsidiary of SK Hynix following the South Korean chipmaker's acquisition of Intel's NAND flash and solid-state drive business. The unit has since become an important part of SK Hynix's broader memory and storage portfolio.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)