Toshiba Corporation announced on Wednesday that it has accepted an offer from President and CEO Nobuaki Kurumatani to step down as director, executive officer, and representative executive officer on the same date.
In response to this, the Board of Directors voted to elect Chairman Satoshi Tsunakawa as CEO.
Toshiba will hold a press conference at 12:30 p.m. to discuss the change of president, and Tsunakawa and others will attend.
Toshiba Chairman Satoshi Tsunakawa will become chief executive, the company said in a statement.
The statement gave no reason for the resignation but Kurumatani has come under much fire over the bid from CVC, his former employer, and his testy relations with the company’s large activist shareholder base.
Canada’s Brookfield Asset Management Inc is in the preliminary stages of exploring an offer, Bloomberg News reported, citing a person with knowledge of the matter said.
A representative for KKR Japan declined to comment. Brookfield did not immediately respond to a request to comment.
Sources familiar with the matter have said a CVC takeover would shield Kurumatani and other managers from pressure from activist shareholders. The activist shareholders have successfully pushed for an investigation into whether management pressured investors to support their decisions.
The sources declined to be identified due to the sensitivity of the matter.
Shares in Toshiba were trading 7% higher at 4,900 yen, not far off the 5,000 yen per share level reportedly offered by CVC Capital.