Outdoor sports and recreation products maker Vista Outdoor Inc VSTO Board of Directors has rejected the unsolicited proposal received on November 22, 2023, from Colt CZ Group SE.
The decision comes after the Board’s consultation with its financial and legal advisors.
Colt CZ Group’s unsolicited proposal involved the combination with Vista Outdoor in a cash and stock transaction, valuing VSTO at $30 per share.
The Vista Outdoor Board continues to recommend the acquisition of the Sporting Products business by Czechoslovak Group a.s. (CSG).
On October 15, 2023, Vista Outdoor agreed to sell its Sporting Products business to Czechoslovak Group a.s. (CSG) for an enterprise value of $1.91 billion in an all-cash transaction.
The Board said that the November 22 proposal does not take into account the significant stockholder value that is expected to be created by the separation of its Outdoor Products and Sporting Products segments.
Also, the Board added that the $30 per share proposal significantly undervalues Vista and does not provide adequate debt and equity financing details.
Price Action: VSTO shares closed higher by 0.87% at $27.89 on Wednesday.
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