Toshiba CEO resigns due to controversial spin-off plan

Asian Tech Press (Mar. 2) -- Toshiba's president and CEO Satoshi Tsunakawa resigned on Tuesday due to confusion caused by the sudden change in the company's reorganization plans.

A group of Japanese media outlets reported on it, confirming previous rumors that senior executive Taro Shimada succeeded Tsunakawa as the new CEO.

Tsunakawa's stepping down is also seen as an attempt to take responsibility for the instability and confusion caused by changes in Toshiba's controversial spin-off plans.

Its reorganization plan has changed several times, from an initial three-way split to a recent two-part breakup. But the latest plan has been opposed by some activist investors, with Singapore-based 3D Investment Partners Pte has calling for reconsideration of other options.

Tsunakawa will continue to serve as chairman of the board for now. And Mamoru Hatazawa, the company's vice president, also stepped down from his position on the same day.

According to Nikkei, the appointments came ahead of a March 24 extraordinary shareholders' meeting, when officials will present a plan to split the company into two parts.

Toshiba's major shareholders include activist investors such as Singapore's Effissimo Capital Management and 3D Investment Partners, as well as U.S.-based Farallon Capital Management.

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