Investment firm MNC Capital has raised its all-cash buyout offer for Vista Outdoor – a provider of shooting and outdoor sports products, to $43 per share, up from its previous offer of $42 per share, valuing the business at $2.51bn, according to a report by Reuters.
The reports cites Vista as confirming that the company’s board received the offer, which represents a 12.3% premium over the Vista Outdoor’s last closing price of $38.29 on Friday, according to calculations by Reuters and LSEG data, on Friday evening, with a deadline for acceptance set for Monday.
In a letter sent to Vista on Friday, MNC Capital stated: “Despite substantial market headwinds for consumer spending and softness in Vista’s recent quarterly results, MNC is now prepared to offer an increased all-cash purchase price of $43.00 per share.”
Vista subsequently expressed frustration with the manner in which MNC communicated the offer to the public so soon after its delivery, saying in a statement that: “The public communication by MNC only hours after delivery of the proposal, as well as the Monday expiration, continues a frustrating pattern and is not constructive.”
The board however will continue discussions with MNC and other interested parties, according to then statement.
Vista had previously rejected MNC’s earlier buyout offer of $42 per share, stating it undervalued the company’s sporting goods division, Revelyst.
Adding to the complexity of the situation, Prague-based defence firm Czechoslovak Group (CSG) has been considering the acquisition of Vista’s Revelyst division, alongside its existing $2.15 bn bid for Vista’s ammunition business, Kinetic Group.
The bidding war, which began earlier this year, has seen multiple offers from MNC rejected by Vista, while CSG’s bid for Kinetic has raised national security concerns, despite receiving regulatory approval in the US.
Proxy advisory firm Glass Lewis has recommended that Vista shareholders vote in favour of the proposed merger of the company’s ammunition unit with CSG. Meanwhile, Institutional Shareholder Services has advised against it. Vista has been conducting a strategic review and postponed its special meeting, initially set for 30 July, to 13 September, when shareholders are expected to vote on the CSG deal.
The ongoing saga for Vista, the parent company of Federal Ammunition and Remington Ammunition, is playing out amid increasing demand for military supplies, particularly since the escalation of the Russia-Ukraine conflict in 2022.
