Vista Outdoor Surges As MNC Capital Ups The Ante With Sweetened Bid: Details

Zinger Key Points
  • MNC Capital has increased its offer to acquire Vista Outdoor to over $3.0 billion, with a revised proposal of $39.50 per share.

Vista Outdoor Inc. VSTO shares are trading higher after MNC Capital increased its offer to acquire the company for over $3.0 billion.

The revised proposal of $39.50 represents a 46% premium to the VWAP from the announcement of Vista’s transaction with the Czechoslovak Group a.s. on October 16, 2023, up to the last closing price before MNC’s initial offer on February 19, 2024.

The revised offer is over a 30% premium to the last closing price before MNC’s initial offer.

Also, the latest offer implies a valuation for Revelyst of over $1 billion, compared to Vista’s valuation for Revelyst of $570 million disclosed in its investor presentation on February 1, 2024.

MNC’s revised offer is based on Transaction Expenses being $50 million and will be adjusted accordingly based on the actual amount of Transaction Expenses.

Mark Gottfredson, Managing Director of MNC Capital, said, “MNC is proud to represent an American alternative. Our proposal provides compelling value and certainty for Vista shareholders and is in the best interests of Vista’s employees and the broader safety and security of the U.S.”

“We have confidence in the management of both the Kinetic Group and Revelyst and expect to work closely with them to achieve the full potential of both companies,”  

In March, Vista Outdoor confirmed the receipt of an unsolicited indication of interest from MNC Capital in an all-cash transaction for $35.00 per Vista share. Also, in the same month, MNC Capital escalated its bid to $37.50 per share.

Earlier, Vista Outdoor rejected MNC Capital’s unsolicited indication of interest and also entered into an amendment to the merger agreement with Czechoslovak Group a.s on May 27. 

Related: Vista Outdoor Rejects Colt CZ Group’s $30 Per Share Offer: Here’s Why

Price Action: VSTO shares are up 6.97% at $36.85 premarket at the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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