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MNC Capital said on Saturday it had increased its all cash buyout offer for Vista Outdoor (NYSE:VSTO) to $43 per share from $42 per share.
The investment firm’s offer values the U.S. maker of recreational products at $2.51 billion, a premium of 12.30% to the firm’s last close of $38.29 on Friday.
MNC added that it was raising its offer for Vista (VSTO), “despite substantial market headwinds for consumer spending and softness in Vista’s recent quarterly results.”
The investment firm said that it had given Vista (VSTO) until Monday to inform the Czechoslovak Group (CSG) whether it intends to sign a deal with MNC. It will withdraw the revised offer if the deadline is not met.
Vista (VSTO) said it had received MNC’s latest offer but found “public communication by MNC only hours after delivery of the proposal as well as the Monday expiration continue a frustrating pattern and is not constructive.”
The parent of Federal Ammunition and Remington Ammunition had previously rejected MNC’s buyout offer for $42 per share, in favor of an increased bid for its ammunition unit, Kinetic Group, from CSG.
While CSG has only bid for the Kinetic Group, MNC is looking to acquire the whole company. MNC is partnering with an unnamed equity firm which would own the Revelyst business, Vista’s (VSTO) sporting gear unit.
CSG has also been considering an acquisition of Revelyst with potential partners, in addition to its proposed acquisition of the Kinetic Group.
The bidding war has been going on since the start of the year, with Vista (VSTO) rejecting multiple offers from MNC over CSG’s bids. However, the Prague-based defense firm’s offer has raised national security concerns despite receiving regulatory approval.
Proxy advisory firm Glass Lewis has recommended that Vista (VSTO) shareholders vote in favor of the sale of its Kinetic Group to CSG. Institutional Shareholder Services has recommended against a deal with CSG.
Vista (VSTO) launched a strategic review in July, and postponed its special meeting where shareholders were expected to vote on the CSG deal to September 30 from July 30, the latest in a string of postponements.
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