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Toshiba empire split into three after erasing CEO Osamu Nagayama’s name from its history – Executive Digest

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Toshiba empire split into three after erasing CEO Osamu Nagayama's name from its history - Executive Digest

Toshiba succumbed to investor pressure. The Empire of Japan will split into three companies to prevent new incidents of mismanagement like those reported in recent months.

“Throughout its more than 140-year history, Toshiba has continually evolved to stay ahead of its time,” said CEO Satoshi Tsunakawa.

“Today’s advertising is no different. To enhance our competitiveness, we will split the group into three companies so that each organization has the greater flexibility it needs to meet new market opportunities and challenges, ”added the CEO.

The Tokyo-based company said it would split its core operations, thus placing two new public companies, one for infrastructure services and one for “equipment.”

The rest of the empire will be housed in Kioxia Holdings and Toshiba Tec Corp. The target is to complete the allocation by the second half of FY2023.

The company also planned to pay dividends to shareholders in the amount of 100 billion yen (about 800 million euros at today’s exchange rate).

A week ago, a Toshiba spokesman announced that the company is considering splitting the company into three parts.

This strategy could ease pressure from activist shareholders who now make up a significant portion of the Japanese firm’s investor base.

“This change is a strategic option that is being considered,” the company said in a statement.

Toshiba is in the process of drawing up a new medium-term plan to increase corporate value with the already advanced Nikkei index, which the company intended to split by 2023.

A dark scenario to avoid

In June, Toshiba’s board appointed CEO Satoshi Tsunakawa as interim chairman of the company following the removal of Osamu Nagayama.

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In a statement released, the company acknowledged the “seriousness of this exception.”

The Japanese giant begins the hiring process to select Tsunakawa’s successor.

The general meeting of shareholders voted for the resignation of Toshiba CEO Osamu Nagayama, a source attending the meeting told Reuters.

According to the same source, this meeting was attended by more foreign shareholders than at previous meetings, as they considered the meeting not only “extremely important for the viability of the company, but also for the reputation of Japan.”

Nagayama was forced to step down after an independent investigation this month revealed that Toshiba, in cahoots with the Japanese Department of Commerce, tried to prevent foreign shareholders from gaining influence on the board of directors during last year’s AGM.

This week, Toshiba’s CEO launched an internal investigation into the “unacceptable events” facing the company. In an open letter sent to shareholders, he complained about “undermining confidence in the company” after a duel between management and investors.

“In addition to the ongoing investigation, Toshiba will order the recruitment of new members to the executive body, which will expedite the selection process to appoint a future replacement for Satoshi Tsunakawa,” the company’s interim CEO explained in a letter.

In June, a number of shareholders said a Japanese company and the Tokyo government conspired to harm some of the shareholders.

In a statement sent to leading newsrooms around the world, Singapore-based Effissimo, Toshiba’s largest shareholder with 9.9% of the shares, called the board “ineffective” and called for Nagayama to leave.

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Economy

ERSE bans the cost of the Iberian contract mechanism from being included in electricity bills until April 26 – ECO

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ERSE bans the cost of the Iberian contract mechanism from being included in electricity bills until April 26 - ECO





ERSE bans the cost of the Iberian contract mechanism from being included in electricity bills until April 26 – ECO































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Economy

Kazakhstan is preparing to supply oil to Azerbaijan instead of Russia – Oil

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Kazakhstan is preparing to supply oil to Azerbaijan instead of Russia - Oil

In the international oil market, a new adjustment of black gold routes may occur. Kazakhstan is preparing to export its oil via Azerbaijan’s largest oil pipeline to circumvent Russia’s threat to close the Black Sea port of Novorossiysk.

After a Russian court threatened to cut off an oil route through which Kazakhstan exports black gold to the world, Astana is preparing to ship its oil from Azerbaijan’s largest oil pipeline as early as September, sources close to the case say, citing Reuters.

For about two decades, Kazakh oil, which accounts for 1% of the world’s oil reserves, was transported through the CPC (Caspian Pipeline Consortium) pipeline, which was sent to the Russian port of Novorossiysk on the Black Sea, from where the oil was shipped. the rest of the world.

However, in July a Russian court threatened to shut down the CPC pipeline to Kazakhstan, prompting the Astana government and foreign companies operating in the country’s oil sector to reach out to other possible partners to ensure that if Russia ceases to act as a bridge between Kazakhstan’s oil and the world There may be other transportation options.

Thus, one of the sources assured Reuters that the Kazakh oil company Kazmunaigas (KMG) is negotiating with the Azerbaijani side to export 1.5 million tons of oil per year through the Azerbaijani pipeline, which transports raw materials to the port of Ceyhan. , Turkey. The contract is to be signed in August, and oil on this route is to start in September.

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However, these agreements may not be enough to ensure that the world receives the same number of barrels of oil from Kazakhstan as before Russia’s possible production cuts.

According to the British agency, this partnership will bring 30,000 barrels of oil per day to countries buying Kazakh oil, which is very small compared to the 1.4 million barrels per day currently transported by CPC.

In addition, two other sources report that Astana is in talks to have another 3.5 million tons of crude oil annually exported via another pipeline to the port of Supsa in the Black Sea region from Georgia starting next year. In a Reuters report, KMG representatives declined to comment on the issue.

Kazakhstan can make a difference in the uncertain future

By seeking to sign these agreements, Kazakhstan can not only ensure its own economic viability, but also ensure that the imbalance between supply and demand for oil on the international market does not worsen.

Oil consumption is expected to rise to 2.1 million barrels a day this year, up 300,000 barrels from the previous forecast, according to International Energy Agency data released this Thursday.

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Economy

Caixa Geral de Depósitos may close 23 branches this month – Executive Digest

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The union of workers of the CGD group companies, STEC, has published information received from the administration of Caixa Geral de Depósitos (CGD), announcing that the bank intends to further cut costs and close 23 more branches during August, with more frequency in the Lisbon and Porto areas .

The union warns that with this closure there will be an “inevitable congestion” of other branches in these areas, pointing out that even now they are having difficulty responding to services and recalling that from 2012 to 2022 they left CGD more than 3,300 workers and 300 branches were closed in Portugal.

STEC points to the government’s statement that it “cannot abdicate its responsibility for territorial integrity” and that “it is essential that the state defines the strategic direction that the bank must take, namely its responsibilities in terms of the public interest “. … and the needs of the population, guaranteeing them a service of proximity and quality.”

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