Nobuki Kurumatani will be replaced as chief executive officer and chairman, with his predecessor, Satoshi Tsunakawa, who remains on the board as the first COO and currently chairman.
The president of Toshiba Corp stepped in on April 14, with the Japanese technology and manufacturing giant saying it was studying a takeover offer from a global fund where they had previously worked.
Tokyo-based Toshiba said in a statement that Nobuki Kurumatani resigned at the board meeting and was accepted by the board, effective April 14.
Mr. Kurumatani led the Japan operations of CVC Capital Partners, which proposed the acquisition last week before taking his position as chief executive of Toshiba in 2018.
Some questions were raised, leading to the board’s discussions about Mr. Kurumatani’s takeover, both within and outside Tokyo-based Toshiba.
Mr. Kurumatani did not attend the online news conference, where two board members spoke about his resignation and raised questions.
A company official read his statement that the resignation was due to personal reasons. “Toshiba is a wonderful company and the precious wealth of Japan. I love Toshiba a lot, ”Mr. Kurumatani said in his message.
The CVC deal is estimated to be worth 2 trillion yen ($ 18 billion) and will make Toshiba private. Toshiba had said that it was giving “careful consideration”. Board member Osamu Nagayama told reporters that the proposal lacked details and has not yet been evaluated.
Trading in the company’s shares was suspended when the news hit last week. Toshiba shares, whose vast business includes elevators and railway making, have been shot on CVC News and are trading at around 5,000 yen ($ 46).
CVC is a European private equity firm based in Luxembourg, which has lent around $ 162 billion, managing more than 300 investors. It declined to comment on the takeover proposal or the president’s resignation.
But there is growing speculation that other funds may offer better prices.
Mr. Kurumatani will be replaced as chief executive officer and chairman, with his predecessor, Satoshi Sasunakawa, who remains on the board as the first COO and currently chairman.
Mr. Tsunkawa oversaw some of the recent financial challenges in Toshiba. Prior to becoming CEO, in his last term since 2016, he led Toshiba’s medical systems business, now a group company of Japanese camera and equipment manufacturer Canon.
Mr. Tsunakawa told reporters that Toshiba is poised for growth as “an infrastructure services company”. He promised to work in the interests of shareholders, employees and society and continue to strengthen the regime.
“We stand behind the principle of ‘do the right thing,'” he said, delivering the motto in English.
Toshiba, founded in 1875, was distinguished as one of Japan’s respected brands, which developed the country’s first radar and microwave, electric rice cookers and laptop computers.
It also invented flash memory, ubiquitous computer chips that store and maintain data for digital cameras, cell phones, and other gadgets. Toshiba no longer manufactures laptops, and has sold its computer chips division.
The company’s fortunes began to shine due to heavy investment in nuclear power. Following the March 2011 nuclear disaster in Fukushima, business costs soared due to rising security concerns. Some nations are turning to sustainable energy.
Toshiba suffered extensive losses from the nuclear power operations of American manufacturer Westinghouse, which Toshiba acquired in 2006. In 2017 Westinghouse filed for bankruptcy protection.
In Japan, Toshiba is disbanding nuclear plants, including one in Fukushima, where a tsunami set up several reactor melodowns 10 years ago.
In 2015, Toshiba admitted that it had been systematically falsifying its books since 2008, as managers tried to meet overly ambitious goals. An external investigation found that it made profits and concealed large-scale expenses.
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