Amid the buyout offer from various investors, the Japanese company lost its chief executive officer. Toshiba Corporation's CEO Nobuaki Kurumatani has called it quits, according to several reports. This comes at a time when controversy over a buyout bid from CVC Capital Partners was brewing and there were reports suggesting that KKR & Co and Brookfield are planning to bid as well for the company.
While many reports suggest that Kurumatani stepped down, there were talks that Toshiba Corporation’s nomination committee met Kurumatani, a former CVC executive, and told him they intended to look for a new chief executive.
Satoshi Tsunakawa, who led the company before Kurumatani and until Wednesday was chairman, will now become the CEO of the Japanese company.
The outgoing CEO was in trouble with Toshiba after its former employer, CVC bid for the company. There were allegations that shareholders were pressured before a meeting to support the decision of the board on the bid.
Later CVC offered to delist the company in order to save Kurumatani from shareholders who have successfully pushed for an independent probe into the allegations, stated reports.
After a series of events, the offer reportedly sparked a strong backlash from Toshiba executives, prompting them to lobby against it to the government. In one survey among the employees, the company found that the employees did not appreciate Kurumatani. A report suggests that the removal process of Nobuaki Kurumatani started after April 6 meeting at Toshiba’s headquarters.