FX.co ★ Vista Outdoor Rejects MNC's $39.50/share Offer; Confirms $2 Bln Alternative Party Offer For Kinetic

Vista Outdoor Inc. (VSTO) announced on Monday that its Board of Directors has declined MNC Capital's recent all-cash acquisition offer of $39.50 per Vista Outdoor share.

In a separate development, Vista Outdoor revealed it has received an acquisition interest from a U.S.-based private investment firm for Kinetic Group, valued at $2.01 billion in a cash-free, debt-free deal. The company is currently engaged in a merger agreement with Czechoslovak Group a.s. (CSG) concerning Kinetic Group.

The Board concluded that MNC's proposal does not present a more favorable financial outcome for stockholders compared to the existing CSG merger agreement.

Concerning the Kinetic Group acquisition, the alternative bidder has pledged full commitment to the proposed purchase price and aims to finalize definitive agreements by June 14.

The new interest is projected to result in a superior proposal, meeting the engagement criteria outlined in the CSG merger agreement. This alternative firm was a participant in Kinetic Group's previous sales process in 2023.

Should Vista Outdoor decide to terminate the merger agreement with CSG in favor of the alternative bidder, it will incur a $47.75 million break fee payable to CSG.

Vista Outdoor reaffirmed its commitment to the current terms with CSG, with its Board continuing to back the acquisition of Kinetic Group by CSG. The company remains confident in securing approval from the Committee on Foreign Investment in the United States for the CSG transaction and expects all other conditions to be met.

To accommodate discussions with the alternative party and provide clarity to stockholders ahead of the vote, Vista Outdoor will adjourn the special stockholders meeting from June 14 to July 2.