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Vista Outdoor is reviewing “strategic alternative” options after multiple shareholders denounced the sale of its ammunition branch to Czech holding company Czechoslovak Group (CSG).
Vista’s decision comes the same day that the company was supposed to hold its shareholder meeting to vote on the sale of The Kinetic Group to CSG. Two of Vista’s largest shareholders, Gates Capital Management and GAMCO Asset Management, both publicly opposed the deal while simultaneously supporting MNC Capital Management’s all-cash offer of $3.2 billion to purchase Kinetic and its outdoor branch Revelyst.
Remington .223 caliber cartridges. (Silas Stein/picture alliance via Getty Images / Getty Images)
“The PVC views MNC Capital’s fully financed $42 per share all-cash offer as superior to the proposed sale of The Kinetic Group to CSG,” GAMCO said in a recent letter to Vista’s board. “We encourage the board to reconsider its position and engage with MNC Capital.”
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Among the options Vista is reviewing before the next shareholder meeting is to re-engage in talks with MNC in hopes of landing a larger proposal from the venture capital group. MNC has said it is willing to go higher, but does not currently see any reason to increase the current offer.
Vista decided to adjourn its meeting until Sept. 13, marking the sixth time this year that the company has done so. Vista is adamant that it is still committed to “acting in the best interests of the company and its stockholders.”
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CSG did not respond to FOX Business’ request for comment.
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