Investment firm MNC Capital has revised its buyout proposal for Vista Outdoor, now offering $43 per share in an all-cash deal, up from its previous bid of $42 per share. This latest offer values Vista at approximately $2.51 billion, representing a 12.30% premium over Vista’s closing price of $38.29 on Friday, according to Reuters and LSEG data.
MNC Capital communicated the updated offer to Vista in a letter on Friday, stating, “Despite facing significant market headwinds and weaker recent quarterly results for Vista, MNC is prepared to increase its purchase price to $43.00 per share.”
Vista had previously turned down MNC’s earlier $3.2 billion bid, arguing that it undervalued the company’s sporting gear division, Revelyst. Meanwhile, the Prague-based defense company Czechoslovak Group (CSG) is pursuing a $2.15 billion bid for Vista’s ammunition business, Kinetic Group, and is also exploring a potential acquisition of Revelyst.
The bidding war has been ongoing since the beginning of the year, with Vista rejecting multiple offers from MNC and favoring CSG’s bid for Kinetic. Despite CSG’s bid receiving U.S. regulatory clearance, it has raised national security concerns.
Proxy advisory firm Glass Lewis has endorsed the proposed merger of Vista’s ammunition unit with CSG, whereas Institutional Shareholder Services has advised against it. Vista has postponed its special meeting, initially set for July 30, to September 13 to allow more time for consideration.
The latest move by MNC Capital intensifies the ongoing acquisition saga involving Vista, whose Federal Ammunition and Remington Ammunition brands are in high demand due to increased military supply needs following the Russia-Ukraine conflict.
MNC Capital is collaborating with an unnamed private equity firm for the deal, which would assume ownership of the Revelyst business. The firm has given Vista until Monday to decide whether to accept the offer or proceed with the CSG deal, with MNC threatening to withdraw its proposal if the deadline is missed. MNC has assured that it has secured the necessary financing for the transaction, split between equity and debt.
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