Toshiba Corporation TOSYY TOSBF CEO Nobuaki Kurumatani has resigned from his position amid reports of a $20 billion buyout offer of the Japanese company by the private equity firm CVC Capital and a growing lack of internal support for his leadership.
What Happened: According to a Reuters report that cited unnamed "people familiar with the matter," Toshiba's board had planned the replacement due to growing dissatisfaction with his leadership.
Kurumatani, who was formerly a CVC president before taking the Toshiba leadership role three years ago, saw his support within the company erode. A Bloomberg report that also cited unnamed "people familiar with the matter" stated that an internal poll of Toshiba employees in January found less than 60% had confidence his Kurumatani, down from more than 90% last year, while more than 20% voiced a specific a lack of confidence in his leadership, up from less than 5% in the previous year.
What's Next: Toshiba Chairman Satoshi Tsunakawa will return to the CEO position he previously held on an interim basis.
CVC's buyout offer was made public on April 6. Another private equity firm, KKR & Co.. is also reportedly exploring its own bid for Toshiba.
TOSSY closed 11.6% higher at $23.28 and TOSBF closed 10.9% up at $44.83 on Tuesday.
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