Japanese restaraunt chain Benihana Inc. (Nasdaq: BNHN) has agreed to be taken private and sold to Angelo, Gordon & Co.'s private equity group for around $296 million after profits fell in the past year because of increased costs.

Miami-based Benihana, which has 95 stores, will be sold for $16.30 per share, a 23 percent premium on Monday's close of $13.30.

Benihana's board has approved the deal, which also requires the approval of the majority of shareholders. They company is allowed to seek other third-party proposals through July 1.

The company said in March it was exploring strategic options, after it said fiscal third quarter net income fell 47 percent to $1 million, or 6 cents per share, down from $1.9 million, or 12 cents per share, in the previous year. Despite revenue increasing to $77 million from $72.9 million in the prior year, higher expenses related to ingredients, operations and administration hurt the company.

Shares of Benihana rose two cents to $16.14 in Wednesday afternoon trading after rising $2.82 on Tuesday.