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Toshiba Corp. chief executive Nobuaki Kurumatani resigned on Wednesday amid controversy over a $ 20 billion buyout bid from CVC Capital Partners and the conglomerate’s shares rose on reports that KKR & Co and Brookfield were also planning deals.
Satoshi Tsunakawa, who previously led the company before Kurumatani and was chairman until Wednesday, will return to the helm.
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Kurumatani was under fire over the offer of CVC, its former employer, as well as damaging allegations that management had put investors under pressure before a shareholders’ meeting to support the desired board appointments.
CVC’s offer to keep the Japanese conglomerate affected by the scandal private and to maintain its current management was designed to protect Kurumatani and other executives from pressure from activist shareholders who are successfully conducting an independent investigation into the allegations. strived.
The offer caused a strong backlash from Toshiba executives and some board members, who asked them to lobby against the government against it. Due to the sensitivity of the case, the sources do not want to be identified.
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“Tsunakawa has the confidence of various stakeholders,” Osamu Nagayama, chairman of the Toshiba board, told a news conference, adding that Kurumatani had told the board that he would retire because the company’s recovery is now in place.
Nagayama also said that CVC’s proposal of April 6 is unsolicited, that it is not good and that it should be considered carefully.
Toshiba will consider setting up an independent committee of external directors upon receipt of a formal proposal from CVC, he added.
Shares in Toshiba traded 5% higher at 4,825 yen on Wednesday afternoon, not too far from the 5,000 yen per share suggested by CVC, according to a source.
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It looks like other suitors are waiting in the wings.
Financial Equity giant KKR & Co is considering a buyout offer that will exceed CVCs, the Financial Times reported, citing several people who informed about the plans.
Bloomberg News reports that Brookfield Asset Management Inc in Canada is investigating an offer, referring to a person with knowledge of it.
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A representative of KKR Japan declined to comment. Brookfield did not immediately respond to a request for comment.
(Reporting by Makiko Yamazaki; Additional reporting by Chang-Ran Kim, Ritsuko Ando and Sakura Murakami in Tokyo and Kane Wu in Hong Kong; Edited by Edwina Gibbs)