By using our website, you agree to the use of our cookies.

Advertisement

2023 GOVERNORSHIP AND
STATE HOUSE OF ASSEMBLY ELECTIONS

  • days
  • Hours
  • Minutes
  • Seconds
🇳🇬 👍 🇳🇬
News

Toshiba CEO resigns as buyout offer incites Chaos

Advertisement

 

Advertisement

Kurumatani declined to appear before journalists, but a statement from him was read out at the event.

 

His departure comes as board members raise questions about the buyout offer from CVC Capital Partners, where Kurumatani formerly headed Japanese operations — though Nagayama insisted claims of a conflict of interest had “nothing to do” with the resignation.

Advertisement

 

The private equity firm is reportedly offering a deal in excess of $20 billion, but there are reports that some in Toshiba see that sum as too small.

 

The Japanese conglomerate has worked to right the ship after a major accounting scandal in 2015 and the 2017 bankruptcy of its US nuclear subsidiary.

Advertisement

 

 

 

Advertisement

After sweeping restructuring, its earnings rebounded and it returned to the prestigious first section of the Tokyo Stock Exchange in January.

 

A statement from Kuramtani said he was stepping down given the return, as he had “completed my mission”.

 

But the departure is likely to be seen as a reflection of internal disagreements over the CVC offer.

 

The Financial Times said Wednesday that another private equity fund, KKR, is planning to offer its own larger buyout proposal.

 

And Bloomberg News reported that a third, Canadian Brookfield Asset Management, was also exploring a possible offer.

 

Toshiba officials did not address the reports at Wednesday’s press conference.

 

Read Also

– ‘Sticky situation’ -Toshiba last week confirmed it had received the CVC offer, which would take Toshiba private. Delisting the firm could produce faster decision-making by Toshiba’s management, which has clashed with shareholders recently.

 

 

It could also allow Toshiba to concentrate resources on renewable energies and other core businesses.

 

But any buyout offer is likely to face significant challenges, including securing financing and regulatory approval.

 

Nagayama said Toshiba would consider CVC’s offer cautiously but warned that it “lacks detail as an initial proposal”.

 

“It’s not something Toshiba has asked for, and it has come suddenly,” he said.

 

“We will make the best choice for shareholders, our employees, and society” if a formal proposal is made, said Toshiba’s new CEO Satoshi Tsunakawa.

 

Kurumatani worked for the CVC between 2017 and 2018 and his departure will “remove uncertainty over potential conflicts of interest”, said Justin Tang, head of Asian research at United First Partners.

 

It will also “force the board to seek other offers that are in the best interests of shareholders”, he told AFP.

 

 

“It is a very sticky situation at present.”

 

CVC reportedly hopes to secure financing assistance for its buyout bid and Toshiba last week warned that was likely to involve “a substantial amount of time and considerable complexity”.

 

The CVC offer is reportedly around 5,000 yen a share, but Tang said he believes “a price north of 6,000 yen is necessary to get shareholders over the line”.

 

Toshiba shares closed up 5.76 percent at 4,860 yen.

 

AFP

 

Tags: TOSHIBA CEO

join punch telegram channel

Kindly share this story:

Download PUNCH NEWS app:

Download The Punch News App for Android

Download The Punch News App for iOS

 

 

Recommended Stories

 

Punch Newspapers

Search for:

Search …

News

Sports

Metro Plus

Politics

Featured

Latest News

Business

Business & Economy

Opinion

Entertainment

Auto Famous

Auto Punch

Barka Da Sallah

Barriers Breaker

Breaking News

Brexit

Columns

Corona

Anti-corruption

Biafra

Boko Haram

Case Review

Court News

Court Trivia

Campus Champion

Celebrity

City round

Interview

Panorama

Crossfire

Opinion

Octogenarian

Special Features

Spice

Technology

Famous Parent

Education

Cartoon

Columns

Corona

Campus Champion

Subscribe

punchng.com © 1971-2021 The Punch newspaper

 

About us

Advertise with us

Contact

Social m edia:

Sign Up For Punch Newsletter

Enter Email

SubmitNo, thanks

By submitting you agree to our privacy policy


Disclaimer

Contents provided and/or opinions expressed here do not reflect the opinions of The Pacesetter Frontier Magazine or any employee thereof.

Support The Pacesetter Frontier Magazine

It takes a lot to get credible, true and reliable stories.

As a privately owned media outfit, we believe in setting the pace and leaving strides in time.

If you like what we do, you can donate a token to us here. Your support will ensure that the right news is put out there at all times, reaching an unlimited number of persons at no cost to them.

Related posts

Leave a Reply

Required fields are marked *