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Toshiba board meets amid reports of president’s resignation

TOKYO (AP) – The board of Toshiba Corp. is meeting on Wednesday, according to Japanese media reports, as the president resigns as the tech conglomerate considers a bid to acquire the global fund where he previously worked.

Toshiba said board decisions would be discussed at a board meeting, but would not comment on the resignation.

Nobuaki Kurumatani was the head of operations at CVC Capital Partners Japan Japan, which offered to acquire the acquisition last week before taking over as CEO of Toshiba in 2018.

Some questions were raised, both at the Tokyo-based company and abroad, about Kurumatani leading the board discussion on the acquisition.

The value of last week’s CVC deal is estimated at 2 trillion yen ($ 18 billion), և Toshiba will become private. Toshiba said it was “paying close attention” to it.

The trading of the company’s shares was stopped when the news appeared last week. Shares of Toshiba, whose large business includes elevators, railroads, and CVC news, traded for about 4,500 yen ($ 41).

CVC is a Luxembourg-based private equity firm committed to raising $ 162 billion, managing more than 300 investors. It declined to comment on the offer or the president’s possible resignation.

Kur apocalyptic media reports that Kurumatani will be replaced by his predecessor, Satoshi Unkavavan, who remains on the board as the current COO president.

Founded in 1875, Toshiba has long been considered one of Japan’s most respected brands, developing the country’s first radar and microwave ovens, electric rice cookers and laptops.

It invented flash memory, ubiquitous computer chips that store data from digital cameras, cell phones, and other devices. Toshiba no longer makes laptops, it has sold its share of computer chips.

Toshiba’s capacity began to crumble due to large investments in nuclear energy. After the nuclear disaster in Fukushima in March 2011, business expenses increased due to growing security concerns. Some countries are turning to sustainable energy.

Bankruptcy operations by Toshiba, the American manufacturer Westinghouse, which filed for bankruptcy in 2006 with Toshiba, also caused significant damage to Toshiba.

In Japan, Toshiba is shutting down nuclear power plants, including Fukushima, where a tsunami 10 years ago triggered multiple reactor melts.

In 2015, Toshiba admitted that it had been systematically falsifying its books since 2008 as executives tried to achieve extremely ambitious goals. The external investigation revealed that it had an exaggerated profit, it hid huge expenses.

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Yuri Kageyama is on Twitter: https://twitter.com/yurikageyama

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