Tue. Jun 25th, 2024
Vista Outdoor considering new $2 billion bid for ammunition business

A new bidder has emerged with an offer to acquire the Kinetic Group, a division of Vista Outdoor. The unnamed bidder, who had previously made an offer, said they would pay over $2 billion for the group. Meanwhile, the board of directors at Vista rejected the latest revised bid by MNC Capital for the entire company.

The rejection came after more than 20 months of due diligence and three public bids from MNC Capital. In a letter to MNC, the board wrote that they continue to believe that their pending deal with CSG will create greater value for their stockholders. The board postponed a special shareholder meeting scheduled for June 14 to July 2 to review the new bid.

Vista had previously engaged with over two dozen parties for various bids to acquire all or portions of the company. They accepted an offer from CSG in October and owe them a $47.75 million termination fee if they choose a different bidder. The alternative bidder sent a letter revising their earlier offer on June 3, offering $1.91 billion for the Kinetic Group and splitting the termination fee with Vista. However, this bid was rejected by the board on June 7 after extensive debate with financial and legal experts. Later that day, the alternative bidder responded with a cash-free and debt-free offer of over $2 billion, which Vista accepted despite paying the full termination fee to CSG.

As of Monday morning, shares of Vista Outdoor were trading slightly up around $35.92 per share while recommending their deal with CSG as it is confident it can gain approval from Committee on Foreign Investment in United States (CFIUS).

By Aiden Nguyen

As a content writer at newscholarly.com, I delve into the realms of storytelling with the power of words. With a knack for research and a passion for crafting compelling narratives, I strive to bring forth engaging and informative articles for our readers. From decoding complex concepts to unraveling current events, I aim to captivate and educate through the art of writing. Join me on this journey as we explore the ever-evolving landscape of news and knowledge together.

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