TOKYO, Nov 12 (Reuters) - Japan's Toshiba Corp will
into three separate companies in a bid to appease investors
seeking a radical overhaul after years of scandal.
The once-storied conglomerate has been battered by
accounting scandals, massive writedowns for its U.S. nuclear
business, the sale of its prized chip unit and it was also found
to have colluded to prevent overseas investors from gaining
Here is a timeline of Toshiba' woes since 2015.
2015 - Toshiba discloses accounting malpractices across multiple
divisions, which involved top management. In total, it
overstated its pretax profit by 230 billion yen ($2 billion)
over seven years.
Dec. 2016 - Toshiba flags it will take a charge of several
billion dollars in relation to a nuclear power plant
construction company that its U.S. unit, Westinghouse Electric,
had bought a year earlier.
March 2017 - Westinghouse files for Chapter 11 bankruptcy
protection due to billions of dollars in cost overruns and
years-long delays at U.S. power projects. Faced with over $6
billion in liabilities linked to Westinghouse, Toshiba decides
to put its prized chip unit, Toshiba Memory, up for sale.
Sept. 2017 - Toshiba agrees to sell the chip unit to a
consortium led by Bain Capital for $18 billion, a deal under
which Toshiba retains a large stake. Worried it could be
delisted for having liabilities exceed assets for a second
straight year, Toshiba is desperate to close the deal by the end
of the financial year in March. But it is caught up in a
prolonged legal dispute with chip joint venture partner Western
Digital Corp over the sale and antitrust reviews are
expected to take months.
Dec. 2017 - Toshiba secures a $5.4 billion cash injection from
30-plus overseas investors that helps it avoid a delisting but
brings in prominent activist shareholders including Elliott
Management, Third Point and Farallon. It settles the dispute
with Western Digital.
April 2018 - Toshiba seeks to turn a new page by bringing in an
outsider - Nobuaki Kurumatani, a former executive at Toshiba's
main creditor Sumitomo Mitsui Financial Group - as
June 2018 - Toshiba completes the sale of Toshiba Memory,
renamed Kioxia, to the Bain consortium.
June 2019 - Bowing to pressure from activist investors, Toshiba
invites four non-Japanese directors to its board.
Jan. 2020 - Toshiba finds fresh accounting irregularities at a
wholly owned subsidiary.
July 2020 - Five director candidates nominated by activist
shareholders seeking to improve governance and change strategy
are voted down at Toshiba's annual general meeting.
Sept. 2020 - Toshiba discloses more than 1,000 postal voting
forms for its AGM went uncounted. The bank that counted the
votes, Sumitomo Mitsui Trust Bank, later reveals
widespread failure to count all valid votes at AGMs of its
client firms over the past two decades.
March 2021 - Shareholders approve an independent investigation
into allegations that investors were pressured ahead of the
previous year's AGM.
April 2021 - CVC Capital Partners makes an unsolicited $21
billion offer to take Toshiba private. A week later, CEO
Kurumatani resigns amid controversy over the CVC bid, which was
perceived by some within company management as designed to
shield him from activist shareholders. Toshiba's subsequent
dismissal of the CVC offer, however, angers some activist
June 10, 2021 - The shareholder-commissioned investigation
concludes Toshiba colluded with Japan's trade ministry - which
sees Toshiba as a strategic asset due to its nuclear reactor and
defense technology - to block overseas investors from gaining
influence at the 2020 shareholders meeting.
June 25, 2021 - Shareholders oust board chairman Osamu Nagayama
after critics accuse the board of failing to address the
allegations about pressuring overseas investors. Toshiba pledges
to undertake a full review of assets and engage with potential
Nov. 12, 2021 - Toshiba says it will split into three separate
companies with one unit focused on energy, another on
infrastructure and the third, which will retain the Toshiba
name, managing its stake in flash-memory chip company Kioxia
Holdings Corp. and other assets.
($1 = 113.5900 yen)
(Reporting by Makiko Yamazaki; Editing by Edwina Gibbs)