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Toshiba CEO resigns

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Toshiba CEO Nobuaki Kurumatani resigned on Wednesday with immediate effect, the Japanese conglomerate in the midst of the storm announced. Toshiba’s chairman of the board, Satoshi Tsunakawa, 65, will now combine the functions of chairman and chief executive officer, the group said in a statement after a board meeting.

The retention of Nobuaki Kurumatani, a former financier outside Toshiba appointed to head the group in 2018 to get it out of a serious crisis, was considered impossible internally, according to the business daily. Nikkei. His future seemed already very compromised since his dismal personal failure last month against the activist shareholders of Toshiba.

The article of August 10, 2017: Toshiba finally publishes annual accounts: 7.5 billion euros in net loss

The shareholders then managed to pass a rebellious resolution at an extraordinary general meeting of the group, allowing the launch of an independent investigation to shed light on the ordinary general meeting of Toshiba in 2020, during which Nobuaki Kurumatani was reappointed in questionable circumstances.

Eliminate potential conflicts of interest in relation to the HVAC offer

The proposed takeover of Toshiba by the investment firm CVC Capital Partners, revealed last week, had further weakened the position of Nobuaki Kurumatani, given his proximity to CVC, of ​​which he was president in Japan just before taking the reins. from Toshiba.

His departure “should remove uncertainties about potential conflicts of interest in relation to CVC’s offer, and push the board of directors to seek other offers in the best interest of shareholders,” commented Wednesday to Agence France Presse (AFP) Justin Tang, head of research in Asia at United First Partners.

Read more: Toshiba to consider HVAC takeover offer

Financial company active worldwide and headquartered in Luxembourg, CVC has offered to acquire Toshiba for around $ 21 billion according to the press.

However, other investment funds, the American KKR and the Canadian Brookfield Asset Management, are considering competing offers, the Financial Times and the Bloomberg agency said on Wednesday, citing sources familiar with the matter.

A rising share

The possibility of a bidding battle for Toshiba boosted its share price on Wednesday, which jumped 6.63% to 4,900 yen mid-session on the Tokyo Stock Exchange, as the flagship Nikkei fell slightly .

CVC reportedly offered a price of 5,000 yen per share, but a unit price of 6,000 yen (or $ 25 billion in total) might be needed to convince Toshiba shareholders, according to Justin Tang.

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