CSG sweetens bid for Vista Outdoor's ammunition unit to $2.15 billion
(Reuters) -Vista Outdoor said on Monday Czechoslovak Group had raised the base purchase price for its ammunition business, Kinetic Group, by $50 million to $2.15 billion.
Vista had rejected investment firm MNC Capital's final buyout offer of $3.2 billion, or $42 per share, for the entire company earlier this month, saying the bid undervalued Revelyst — its performance gear business.
MNC said on Monday it would make a tender offer to Vista's shareholders at $42 per share, if the company approved and would not reduce its final bid.
Vista, responding to MNC, said it does not support the proposal and reiterated that it "firmly believes" the transaction with CSG is superior.
It also clarified that MNC is not subject to any restrictions from Vista that would require its consent to an unsolicited tender offer by MNC.
Vista had decided to split its performance gear and ammunition units into two separate companies in 2022.
CSG's latest bid comes after its proposed transaction faced opposition from proxy advisory group Institutional Shareholder Services and shareholder Gates Capital Management.
ISS had said MNC's offer was a "better alternative".
This is the fourth time that CSG has raised its bid for Kinetic Group, which houses brands such as Federal Ammunition, since its initial offer of $1.91 billion made in October.
The Prague-based defense firm also raised the cash consideration payable to Vista's shareholders by $3 per share. On closing of the deal, Vista stockholders would receive $24 per share in cash and one share of Revelyst common stock.
Vista adjourned its virtual special shareholder meeting to July 30 from July 23 and said it expects the deal with CSG to close in early August.
The company also reported preliminary first-quarter results for both units and reiterated its fiscal 2025 sales forecast in the range of $2.67 billion to $2.78 billion.
(Reporting by Juveria Tabassum and Utkarsh Shetti; Editing by Shilpi Majumdar and Rashmi Aich)