Raksul raises Goldman-backed MBO bid 11%, extends tender period

TOKYO, Feb 19 (Reuters) - The management of Japanese digital printing firm Raksul 4384.T has raised its buyout offer price for the company's shares to 1,900 yen from 1,710 yen apiece, it said in a release on Thursday.

The company also extended the tender offer period to March 9 from Thursday, having already extended the period once before.

A fund established by Goldman Sachs GS.N is conducting the tender offer and should it succeed, plans are to transfer 50% of voting rights in the company to Raksul Chairman Yasukane Matsumoto and President Yo Nagami.

The case marks the latest instance of a bumped-up offer price in a take-private deal in Japan as shareholders increasingly speak out against deals seen as underpriced. Japanese authorities have sought to spur mergers and acquisitions in Japan as a means of reinvigorating capital markets and raising corporate value.

The Nikkei business daily last month cited Edinburgh-based asset manager Baillie Gifford as saying the offer price was "far too low". Raksul’s shares have been trading above the buyout offer price of 1,710 yen since the MBO plan was announced in December.

After the news, Raksul shares erased earlier gains and were trading down 2.1% at 0510 GMT.

A group of Toyota Motor 7203.T companies last month hiked its tender offer price for forklift truck-maker Toyota Industries 6201.T following stern opposition from minority shareholders, including activist investor Elliott Management, who argued the offer undervalued the firm.