Advertisement
2023 GOVERNORSHIP AND
STATE HOUSE OF ASSEMBLY ELECTIONS
- days
- Hours
- Minutes
- Seconds
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 â though Nagayama insisted claims of a conflict of interest had ânothing to doâ 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.
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 âcompleted my missionâ.
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 Wednesdayâs press conference.
Read Also
â âSticky situationâ -Toshiba last week confirmed it had received the CVC offer, which would take Toshiba private. Delisting the firm could produce faster decision-making by Toshibaâs 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 CVCâs offer cautiously but warned that it âlacks detail as an initial proposalâ.
âItâs not something Toshiba has asked for, and it has come suddenly,â he said.
âWe will make the best choice for shareholders, our employees, and societyâ if a formal proposal is made, said Toshibaâs new CEO Satoshi Tsunakawa.
Kurumatani worked for the CVC between 2017 and 2018 and his departure will âremove uncertainty over potential conflicts of interestâ, said Justin Tang, head of Asian research at United First Partners.
It will also âforce the board to seek other offers that are in the best interests of shareholdersâ, he told AFP.
âIt is a very sticky situation at present.â
CVC reportedly hopes to secure financing assistance for its buyout bid and Toshiba last week warned that was likely to involve âa substantial amount of time and considerable complexityâ.
The CVC offer is reportedly around 5,000 yen a share, but Tang said he believes âa price north of 6,000 yen is necessary to get shareholders over the lineâ.
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 âŠ
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
Stay connected
Recent News
President Bola Tinubu, Gov Peter Mbah Mourn Sen Ayogu Eze
Advertisement President Bola Tinubu and Governor Peter Mbah of Enugu State have both expressed shock over the death of Sen….
Gov Mbah Flags Off Another Round Of Palliatives, Cautions Against Politicisation Of Distribution
Advertisement Governor of Enugu State, Dr. Peter Mbah, on Thursday, flagged off another round of the distribution of palliatives in…