TOKYO - A management buyout offer for Japanese digital printing firm Raksul, backed by Goldman Sachs, has been increased by 11 percent following criticism from investors. The revised offer now stands at 1,900 yen per share, up from the initial 1,710 yen.
This marks the second extension of the tender offer period, now set to conclude on March 9. At the new price, Raksul is valued at approximately 113 billion yen, or $730 million, including treasury shares.
If the buyout is successful, Raksul Chairman Yasukane Matsumoto and President Yo Nagami will collectively hold 50 percent of the company's voting rights, with the remaining stake owned by the Goldman Sachs-backed fund. The initiative aims to address existing business and capital structure challenges.
The move comes as Japanese authorities encourage mergers and acquisitions to invigorate capital markets. However, some shareholders have voiced opposition to deals they perceive as undervalued.
Edinburgh-based asset manager Baillie Gifford had previously stated the Raksul offer price was "far too low." Raksul's shares have consistently traded above the original offer price since the buyout plan was announced in December.
The fund has declared the current price "sufficiently reasonable" for shareholders and indicated no further increase is planned. Following the announcement, Raksul shares experienced a decline, closing down 2.6 percent at 1,910 yen.