Shares of Japanese conglomerate Toshiba are moving sharply higher after Chief Executive Officer Nobuaki Kurumatani announced his resignation.
Kurumatani’s resignation comes amid controversy over a $20 billion U.S. buyout bid from CVC Capital Partners. Shares of Toshiba also moved higher on media reports that KKR & Co. and Brookfield are also planning to make offers to purchase Toshiba and take the company private.
Satoshi Tsunakawa, who led the company before Kurumatani, will once again assume the helm of Toshiba. Kurumatani had been under fire over the bid from CVC, his former employer, as well as damaging allegations that investors were pressured before a shareholder meeting to support several board nominations.
CVC’s offer to take Toshiba private and retain incumbent management was perceived as a move designed to shield Kurumatani from activist shareholders who had been calling for him to step down. The controversial CVC offer sparked a strong backlash from Toshiba managers who lobbied against the proposed takeover with Japanese regulators.
Shares in Toshiba closed 6% higher at 4,860 yen in Asian trading Wednesday (April 14) on news of the resignation and potential new bidders for Toshiba.
