Toshiba will retain Shimada as CEO and acquire 4 management board members from JIP

TOKYO (Reuters) – Japan’s Toshiba said on Thursday that Chief Executive Officer Taro Shimada will remain in his role after the company retires, with private equity firm Japan Industrial Partners (JIP) making up a majority of the board.

JIP, which is leading a consortium to buy out the industrial conglomerate, will send four of its executives to Toshiba’s new seven-member board, including co-founder and CEO Hidemi Moue. Moue will chair the board.

Toshiba said Japanese financial services company Orix and Chubu Electric Power will each send one director to the board. Orix invested 200 billion yen ($1.4 billion) and Chubu 100 billion yen in the $14 billion takeover of Toshiba.

Toshiba’s new management team will include a senior advisor from Sumitomo Mitsui Financial Group, Toshiba’s main lender.

Nominations will take effect on December 22. Toshiba shares will be delisted on December 20.

(This story has been updated to determine whether the date changes take effect on December 22, rather than December 20, in paragraph 5)

($1 = 142.3700 yen)

(Reporting by Mariko Katsumura and Makiko Yamazaki; Editing by Christopher Cushing and Gerry Doyle)