TOKYO, March 1 (Reuters) – Toshiba Corp (6502.T) announced on Tuesday that Chief Executive Satoshi Tsunakawa was stepping down – a sudden departure after sources said internal opposition to the industrial conglomerate’s controversial restructuring plans has waned. was increased.

Shares of Toshhiba jumped 3% following what was seen as a major change of guard in management. Senior executive Taro Shimada, a former executive at Siemens AG who only joined in 2018, will become the company’s new interim head from Tuesday.

Toshiba’s initial plan to split the conglomerate into three had been heavily criticized by overseas hedge fund shareholders. But a revised plan last month that called for a split into two companies and the sale of other businesses also met with opposition from within the company, according to two sources familiar with the matter.

The sources were not authorized to speak to the media and declined to be identified.

Asked about internal opposition, Toshiba said it firmly believed its announced reorganization plan was the best option for the company, but declined to comment further.

For some observers, this surprise decision casts doubt on Toshiba’s ability to continue with its recently revised disruption plans.

“The split plan will be revisited – we think there’s a chance it could be scrapped,” said Justin Tang, head of Asia research at investment adviser United First Partners in Singapore.

Toshiba also said that Mamoru Hatazawa, the company’s senior executive vice president and member of the board of directors, would also step down, while Goro Yanase, the head of Toshiba’s elevator business, would be named chief operating officer. acting

The board will monitor performance and the state of execution of cases and “where appropriate, the board will continue its deliberations with a view to appointing external candidates”, he added.

While Tsunakawa had taken over the role of interim CEO and said he didn’t expect to hold the position long-term, the timing of the announcement came as a surprise.

A Toshiba spokesman said the company has now made decisions on the new appointments as it wants shareholders to be clear who will lead the company ahead of the March 24 extraordinary general meeting which will seek initial shareholder approval. for the revised rupture plan.

Shareholders will also vote on a majority shareholder proposal asking Toshiba to explore other options and seek buyout offers from private equity firms. Read more

Reporting by Makiko Yamazaki and Junko Fujita; Additional reporting by Anshuman Daga in Singapore; Editing by Edwina Gibbs

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