Toshiba’s lurch from crisis to crisis since 2015

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TOKYO, Nov 11 (Businesshala) – Toshiba Corp (6502.T) plans to unveil a new business strategy on Friday. The occasional group has been hit by accounting scandals, massive writedowns for its US nuclear business, the sale of its prized chip unit, and collusion to prevent foreign investors from gaining influence.

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Here’s a timeline of Toshiba’s woes since 2015.

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2015 – Toshiba reveals accounting misconduct across multiple divisions, including top management. In total, it increased its pretax profit to more than 230 billion yen ($2 billion) in seven years.

December 2016 – Toshiba takes over a multibillion-dollar charge in connection with a nuclear power plant construction company that its US arm, Westinghouse Electric, had bought a year earlier.

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March 2017 – Westinghouse files for Chapter 11 bankruptcy protection due to billions of dollars in cost and years of delays in US power projects. Faced with more than $6 billion in liabilities associated with Westinghouse, Toshiba decided to put its prized chip unit, Toshiba Memory, up for sale.

September 2017 – Toshiba agrees to sell the chip unit to a consortium led by Bain Capital for $18 billion, a deal in which Toshiba holds a major stake. Concerned that it could be delisted due to liabilities exceeding assets for the second year in a row, Toshiba is desperate to close the deal by the end of the fiscal year in March. But it has been embroiled in a long-standing legal dispute with chip joint venture partner Western Digital Corp (WDC.O) over the sale, and an antitrust review is expected to take months.

December 2017 – Toshiba receives a $5.4 billion cash injection from more than 30 foreign investors that helps it avoid delisting but brings in major active shareholders, including Elliott Management, Third Point and Farallon. This settles the dispute with Western Digital.

April 2018 – Toshiba seeks to turn a new page by bringing in an outsider – Nobuki Kurumatani, a former executive of Toshiba’s main creditor Sumitomo Mitsui Financial Group (8316.t) – as chief executive officer.

June 2018 – Toshiba completes sale to Bain Consortium, renamed Toshiba Memory, Kioxia.

June 2019 – Bowing to pressure from active investors, Toshiba invites four non-Japanese directors to its board.

January 2020 – Toshiba finds new accounting irregularities in wholly owned subsidiary.

July 2020 – Five director candidates nominated by active shareholders seeking governance reform and strategy change are voted on at Toshiba’s Annual General Meeting.

September 2020 – Toshiba reveals that more than 1,000 postal voting forms for its AGM have gone uncounted. The vote-counting bank, Sumitomo Mitsui Trust Bank (8309.t), later disclosed the widespread failure of its client firms to count all valid votes at AGMs over the past two decades.

March 2021 – Shareholders approve an independent investigation into allegations that investors were pressured prior to last year’s AGM.

April 2021 – CVC Capital Partners makes an unsolicited $21 billion offer to take Toshiba private. A week later, CEO Kurumtani resigned amid controversy over the CVC bid, which some within company management believed was designed to protect him from active shareholders. However, Toshiba’s subsequent rejection of the CVC offer angered some active shareholders.

June 10, 2021 – Shareholder-commissioned investigation concludes that Toshiba colluded with Japan’s Ministry of Trade – which sees Toshiba as a strategic asset because of its nuclear reactor and defense technology – to foreign investors by 2020 shareholders To prevent from gaining effect in the meeting of.

June 25, 2021 — Shareholders oust board chairman Osamu Nagayama after critics accused the board of failing to address allegations of pressure on foreign investors. Toshiba has promised to conduct a thorough review of the property and engage with potential investors.

November 12, 2021 – Toshiba will announce a new business strategy. It is considering splitting into three companies with separate focus on infrastructure, equipment and memory chips, which could address the firm’s persistent group discounts.

($1 = 113.5900 yen)

Reporting by Makiko Yamazaki; Editing by Edwina Gibbs


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