Vista backs Czechoslovak Group's $2 bln latest sweetened offer for sporting unit
Adds response from MNC Capital in paragraph 10 and updates shares in paragraph 5
June 24 (Reuters) -Vista Outdoor VSTO.N has agreed to sell its sporting products and ammunition business to Czechoslovak Group (CSG) for about $2 billion, the company said on Monday, after the Prague-based defense firm raised its offer for a second time.
The unit, which houses brands such as Federal Ammunition and Remington Ammunition, has been the target of multiple bidders due to rising demand for military supplies since Russia's invasion of Ukraine.
The new proposal increases the cash consideration payable by $2.00 per share to $18.00, a 12.5% increase, Vista said on Monday.
The company, which has rejected investment firm MNC Capital's offer to buy the entire business for more than $3 billion, will also return an additional $77 million of excess cash to stockholders as part of the latest CSG plan.
Vista has urged its shareholders to vote in favor of the revised transaction with CSG. Its shares were up 2.4% at $34.96.
Privately held CSG raised its offer to acquire the unit, called Kinetic Group, in May to $1.96 billion from the $1.91 billion it initially made in October.
Vista had in 2022 announced plans to split its outdoor and sporting products units into two separate companies. Post the completion of the separation, the company would re-brand itself as the Kinetic Group.
Investment firm MNC Capital disclosed an interest to acquire the entire company, including its performance gear business Revelyst, in March. However, Vista has rejected the proposals after engaging for months with the firm.
Proxy advisory firm Institutional Shareholder Services (ISS) had last week also recommended shareholders to abstain from the proposed merger with CSG and give more time to solicit engagement with MNC Capital.
MNC Capital declined to comment, while ISS did not immediately respond to a request for comment on Monday.
Vista had last week said that possible pressure from MNC had forced one of the bidders for the Kinetic Group to drop its $2 billion offer.
Reporting by Granth Vanaik in Bengaluru; Editing by Shailesh Kuber and Sriraj Kalluvila
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
