Toshiba's CEO Nobuaki Kurumatani resigned on Wednesday (April 14) amid controversy over a $20 billion buyout bid from CVC Capital Partners.
The conglomerate's shares surged on reports that other suitors are now thought to be waiting in the wings.
Previous CEO Satoshi Tsunakawa will once again assume the helm.
Kurumatani had been under fire over the bid from CVC, his former employer.
There were also damaging allegations that management pressured investors before a shareholder meeting to support desired board nominations.
CVC's offer to take the scandal-hit Japanese conglomerate private and retain incumbent management was perceived as designed to shield Kurumatani and others from pressure from activist shareholders.
Sources said the offer sparked a strong backlash from Toshiba managers and some board members, prompting them to lobby against it to the government.
Shares in Toshiba closed over 5% higher on Wednesday.
Other potential suitors for Toshiba reportedly include private equity giant KKR & Co and Canada's Brookfield Asset Management.