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MNC Capital announced on Saturday that it has increased its cash buyout offer for Vista Outdoor (NYSE:VSTO) to $43 per share from $42 per share.
The investment firm’s offer values the US recreational goods manufacturer at $2.51 billion, representing a premium of 12.30% over the company’s last close of $38.29 on Friday.
International joint stock company in addition that it is raising its bid for Vista (VSTO) “despite significant market headwinds in consumer spending and weak quarterly results for Vista.”
The investment firm said it has given Vista (VSTO) until Monday to inform Czechoslovak Group (CSG) whether it intends to sign a deal with the MNC. It will withdraw the revised offer if the deadline is not met.
Vista (VSTO) said it had received the latest MNC offer but said the “MNC’s public communication just hours after the offer was delivered, as well as the expiry on Monday, continues to be a frustrating pattern and is not constructive.”
The parent company of Federal Ammunition and Remington Ammunition previously rejected a $42-per-share buyout offer from MNC in favor of an increased offer from CSG to acquire its ammunition division, Kinetic Group.
While CSG has only made a bid for Kinetic Group, MNC wants to acquire the entire company. MNC is partnering with an unnamed venture capital firm that would own Revelyst, a unit of Vista Sports (VSTO).
In addition to the planned acquisition of Kinetic Group, CSG is also considering the acquisition of Revelyst with potential partners.
The bidding war has been ongoing since the beginning of the year, with Vista (VSTO) rejecting multiple MNC offers in favor of CSG. However, the Prague defense firm’s bid has raised national security concerns despite receiving regulatory approval.
Advisory firm Glass Lewis recommended that Vista (VSTO) shareholders vote to sell Kinetic Group to CSG. Institutional Shareholder Services recommended that no deal be struck with CSG.
Vista (VSTO) began a strategic review in July and postponed its extraordinary general meeting, at which shareholders were to vote on the CSG deal, from July 30 to September 30, the latest in a series of postponements.
