Kioxia Holdings¡¯ biggest shareholder is an investment vehicle that holds shares claimed by rival SK Hynix.

The flash memory maker¡¯s former parent, Toshiba, has trimmed its stake in Kioxia to around 14.12%, down from 14.48%, as of Aug. 3, Kioxia said in a statement Tuesday.

That makes BCPE Pangea Cayman2, a company set up by Bain Capital, the Japanese chipmaker¡¯s top shareholder with a 14.19% stake, it said.

South Korea¡¯s SK Hynix holds bonds that can be converted into ¡°substantially all¡± of the voting rights of BCPE Pangea Cayman2, according to Kioxia¡¯s annual report. In that report, the Japanese company explicitly lists SK Hynix¡¯s claim as risk factor, saying it represents a possible conflict of interest.

SK Hynix took part in a Bain Capital-led consortium that acquired Kioxia in 2018. As part of that deal, SK Hynix promised to keep its stake at or below 15% of Kioxia¡¯s voting rights until 2028, unless the Japanese chipmaker agreed to allow a bigger stake.