Goldman-backed management buyout offer for Japan's Raksul sweetened by 11%

By Anton Bridge

TOKYO, Feb 19 (Reuters) - A Goldman Sachs-backed management buyout offer for Japanese digital printing firm Raksul 4384.T has been lifted by 11% after investor criticism of the deal, and the tender offer period is now set to run to March 9.

A fund established by Goldman Sachs GS.N said in a statement that the offer to take Raksul private had been sweetened to 1,900 yen per share from 1,710 yen. It was the second extension of the tender offer, which had been due to expire on Thursday.

At the new offer price, Raksul is valued at around 113 billion yen ($730 million) including treasury shares.

Should the buyout succeed, 50% of voting rights in the company will be transferred to Raksul Chairman Yasukane Matsumoto and President Yo Nagami, while the rest will be held by the fund. The buyout is aimed at overcoming business and capital structure challenges, the fund has said.

Japanese authorities have sought to spur mergers and acquisitions in Japan, hoping to reinvigorate capital markets and boost corporate value. But some shareholders have spoken out against deals they see as underpriced.

The Nikkei business daily last month cited Edinburgh-based asset manager Baillie Gifford as saying that the Raksul offer price was "far too low".

Raksul's shares have been trading above the initial offer price of 1,710 yen since the plan was announced in December.

The fund said on Thursday that the price was "sufficiently reasonable" for shareholders and it had no intention of raising it further.

After the news, Raksul shares erased earlier gains and closed at 1,910 yen, down 2.6% on the day.

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

($1 = 154.9800 yen)