MNC Capital Sweetens Offer for Vista Outdoor Amidst Merger Talks with CSG

Industry News This Week
Vista Outdoor Announces Sale of Savage Brand
(Photo: Vista)

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In a daring financial play, MNC Capital Partners, L.P. (“MNC”) has amped up its bid to acquire Vista Outdoor Inc. (“Vista”) to $37.50 per share, an all-cash proposal that rounds out to a hefty $3 billion.

MNC’s revised proposal, free from financing or CFIUS red tape, comes on the heels of Vista’s stock trading below $30. This new offer puts a 93% premium on Vista’s Revelyst valuation, which Vista had previously pitched at $570 million.

In response, Vista Outdoor confirmed the receipt of MNC’s unsolicited proposal, marking a significant uptick from the initial $35 per share offer that Vista rejected on March 4, citing better prospects with the CSG Merger Agreement.

Vista’s Board is now deliberating this revised offer with due diligence, weighing its fiduciary duties and existing commitments, particularly the impending merger with Czechoslovak Group a.s. (“CSG”).

SEE ALSO: Vista Outdoor Set to Raise Ammo Prices in 2024

Vista, a conglomerate of more than three dozen sports and outdoor brands, reassures its stockholders that no immediate action is necessary while its Board reviews MNC’s proposal.

Meanwhile, financial and legal advisors are at hand to help navigate this critical juncture. Morgan Stanley & Co. LLC and Cravath, Swaine & Moore LLP, along with Moelis & Company LLC and Gibson, Dunn & Crutcher LLP for the independent directors, are guiding the process.

Both companies have made forward-looking statements, cautioning stakeholders not to rely unduly on these speculative positions, given the myriad risks and uncertainties inherent in such transactions.

As this corporate drama unfolds, Vista’s stockholders are advised to stay tuned for further developments regarding MNC’s ambitious acquisition attempts and Vista’s strategic response amidst the ongoing CSG merger considerations.

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