Toshiba’s president steps down amid acquisition talks
The president of Toshiba Corp. stepped down Wednesday, a week after the Japanese technology and manufacturing giant said it was studying an acquisition proposal from a global fund where he previously worked.
Nobuaki Kurumatani tendered his resignation at a board meeting, and the board accepted, effective Wednesday, Tokyo-based Toshiba said in a statement.
Kurumatani headed the Japan operations of CVC Capital Partners, which proposed the acquisition last week, before taking his post as chief executive of Toshiba in 2018.
Some questions had been raised, both within and outside Tokyo-based Toshiba, about Kurumatani leading the board discussions on the acquisition.
Kurumatani did not attend the online news conference, where two board members explained his resignation and fielded questions.
A company official read his statement that said the resignation was for personal reasons.
“Toshiba is a wonderful company and is Japan’s precious wealth. I love Toshiba deeply,” Kurumatani said in his message.
The CVC deal is estimated to be worth 2 trillion yen ($18 billion) and will turn Toshiba private. Toshiba had said it was giving it “careful consideration.” Osamu Nagayama, a board member, told reporters the proposal lacked details and could not yet be evaluated.
Trading in the company’s shares was suspended when the news hit last week. Shares of Toshiba, whose sprawling business includes making elevators and railways, shot up on the CVC news and have been trading at nearly 5,000 yen ($46).
CVC is a European private equity firm, based in Luxembourg, which has committed nearly $162 billion in funds, managing more than 300 investors. It has declined to comment on the acquisition proposal or the president’s resignation.