Goldman Sachs-backed management buyout proposal for Japanese digital printing firm Raksul has been revised upward by 11% after investors pushed back on the initial terms.
The fund established by Goldman Sachs announced that the tender offer price will now be 1,900 yen per share, up from the earlier 1,710 yen. The offer period has been prolonged to March 9, representing the second extension of a proposal that had originally been due to expire on Thursday.
At the revised price, the deal places Raksul at an approximate enterprise valuation of 113 billion yen, a figure that takes the company's treasury shares into account and is equated in the original statement to about $730 million.
Under the proposed ownership arrangement, if the buyout receives sufficient acceptances, Raksul Chairman Yasukane Matsumoto and President Yo Nagami would together hold 50% of the company's voting rights. The fund backed by Goldman Sachs would possess the remaining 50%.
The fund said the purpose of the buyout is to address the business and capital structure challenges facing the digital printing company. No additional operational plans or timing beyond the extended tender date were provided in the announcement.
Summary
The management buyout offer for Raksul, supported by a fund established by Goldman Sachs, was raised from 1,710 yen to 1,900 yen per share after investors raised objections. The tender period was extended a second time to March 9. The revised offer values the company at about 113 billion yen including treasury shares. If the transaction succeeds, company leadership would retain half of the voting rights while the fund would hold the other half. The fund stated its intent is to tackle business and capital structure issues.
Key points
- The offer price has been increased by 11% to 1,900 yen per share, up from 1,710 yen.
- The tender offer window has been extended to March 9, the second extension for the proposal.
- The revised valuation is approximately 113 billion yen including treasury shares; voting rights would be split 50/50 between management and the Goldman Sachs-established fund if the buyout completes.
Risks and uncertainties
- Acceptance risk: The buyout requires sufficient shareholder acceptances by the extended deadline; failure to secure those acceptances could derail the transaction. This impacts corporate governance and equity holders.
- Execution risk: The fund's stated objective is to address business and capital structure challenges; the announcement does not specify plans beyond the takeover, leaving uncertainty for operational and financial stakeholders in the printing and corporate finance sectors.