SK hynix has become the de facto largest shareholder in Kioxia, the world’s third-largest NAND flash maker, but uncertainty remains over whether it can participate in the Japanese company’s management, leaving the Korean chipmaker with a valuable yet complicated strategic position. Kioxia said in a regulatory filing on Monday that BCPE Pangea Cayman2 (SPC2) is now its largest stakeholder. SPC2 is a special purpose company established by United States private equity Bain Capital and invested by SK hynix. Toshiba was previously Kioxia’s largest shareholder, but its stake fell to 14.12 percent from 14.48 percent as of July 31 after the Japanese company sold shares in the market last month. With SPC2 maintaining its 14.19 percent stake, it became Kioxia’s largest shareholder. SPC2 was established by Bain Capital, but it effectively serves as an investment vehicle solely for SK hynix. In 2018, the Korean chipmaker invested about 3.9 trillion won ($2.75 billion) through two Bain Capital SPCs — 2.63 trillion won in SPC1, an equity investment vehicle, and 1.3 trillion won through SPC2