A Toshiba Corp unit was hacked by the DarkSide ransomware group, overshadowing an announcement of a strategic review for the Japanese conglomerate under pressure from activist shareholders to seek out suitors.
Toshiba Tec Corp (6588.T), which makes products such as barcode printers and is valued at $2.3 billion, was hacked by DarkSide — the group widely believed to be behind the recent Colonial Pipeline attack, its French subsidiary said.
It added, however, that only a minimal amount of work data had been lost.
Screenshots of DarkSide’s post provided by the cybersecurity firm said more than 740 gigabytes of information was compromised and included passports and other personal information.
Security researchers said DarkSide’s multiple websites had stopped being accessible.
Ransomware attacks have increased in number and amount of demands, with hackers encrypting data and seeking payment in cryptocurrency to unlock it. They increasingly release stolen data as well, or threaten to unless they are paid more.
Amid calls from shareholders to explicitly seek offers from potential suitors after dismissing a $20 billion take-private bid from CVC Capital this year, Toshiba said it was setting up a strategic review committee and had appointed UBS as financial adviser.
The review will be conducted by independent directors and is designed to help the board consider a new business plan to be put forward by management by October.
The CVC offer faced strong opposition within the company. Its plan to retain management was perceived by some as aimed at shielding former CEO Nobuaki Kurumatani from activist shareholders.
At a briefing by the company, 3D Investment Partners and Farallon Capital Management, its No. 2 and No. 3 shareholders respectively, both criticised Toshiba for appearing reluctant to consider offers to go private.
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Chief Executive Satoshi Tsunakawa responded that the company has “no reluctance to consider various proposals to increase corporate value, including going private.”
Sources have said other private equity investors such as KKR & Co Inc and Bain Capital are interested in Toshiba.
However, the Asahi newspaper reported that Bain Capital is not considering buying Toshiba, citing an interview with Yuji Sugimoto, the head of Bain Capital’s Japan operations.
Battered by accounting scandals, massive writedowns for its US nuclear business as well as the sale of its chip unit, Toshiba is a shadow of its former self.
But it remains one of Japan’s few manufacturers of nuclear power reactors and makes defence equipment, meaning any sale would require government approval.
Toshiba forecast a 63 per cent rise in annual operating profit to $1.6 billion, rebounding from pandemic-induced pain in the last year and as restructuring measures bear fruit. That follows a 20 per cent slide in profit last year.
