Toshiba Management Back Fighting Among Themselves As Takeover Deal Looms
They screwed up in the notebook market, they lost the plot in the TV market with the Japanese Company ending up flogging their display business to Hisense and they were involved in one of the biggest tech corruption scandals in Japan in 2018, now Toshiba management is back fighting among themselves over the future of the business.
Last night chief executive of Toshiba has decided to step down as the company’s “old guard” launch a boardroom coup to block a $20bn buyout offer by a European private equity group CVC.
Today the once successful Toshiba notebook business is owned by Sharp.
Japanese media are reporting that the resignation of current CEO Nobuaki Kurumatani is likely to be announced formally on Wednesday as board members prepare to meet to discuss proposals that would put the conglomerate at the centre of Japan’s biggest ever leveraged buyout deal.
According to the UK Financial Times the upheaval comes as rival private equity firm KKR is planning to outbid CVC with a buyout offer in excess of $20bn for Toshiba, according to several people briefed on the plans, increasing prospects for a bidding war between the two groups.
Even before CVC submitted its proposal last week, there were signs of growing internal division at Toshiba, with some factions unhappy with the way Kurumatani has dealt with its activist shareholders and the changes he has implemented since taking over in 2018.
Two of Toshiba’s biggest shareholders have called upon the board to consider seriously any bids from private equity-led consortiums.
A Toshiba board meeting on Wednesday had been expected to debate a proposal from one of its members that Kurumatani step down immediately as head of a company that he has led since it emerged from financial crisis and corruption charges against executives.