Vista Outdoor Inc Stock Price, News & Analysis

TIG Advisors, an investment advisor owning 532,000 shares of Vista Outdoor (NYSE: VSTO), has sent a letter to Vista's Board of Directors advocating for MNC Capital's all-cash acquisition offer of $42 per share. TIG believes this proposal is superior to the pending acquisition of The Kinetic Group by Czechoslovak Group (CSG). The letter criticizes the Board's hesitance, citing MNC's provision of financing and a merger agreement as proof of its commitment. TIG argues that Vista's current transformation plan is riskier and less certain than the immediate value provided by MNC's offer. TIG urges the Board to re-engage with MNC if the pending CSG deal is rejected by shareholders.

The letter also highlights that the market values Vista at $36.41 per share, suggesting the MNC offer includes a premium. TIG emphasizes the need for the Board to act in shareholders' best interests by securing the MNC deal.

Vista Outdoor urged stockholders to support the sale of The Kinetic Group to Czechoslovak Group (CSG) at their upcoming special meeting. The company emphasized that separating Revelyst and The Kinetic Group would unlock additional value for stockholders. Vista Outdoor criticized MNC Capital's financing sources and execution risks, highlighting MNC's inexperience and shifting finances. The company argued that MNC's $42 per share offer undervalues Revelyst and contrasts with the $2.1 billion value from the CSG transaction. Vista Outdoor also disapproved of Institutional Shareholder Services' (ISS) recommendation against the CSG transaction, claiming ISS relied heavily on MNC's inaccurate claims. The special meeting is scheduled for July 23, 2024.

Revelyst, a segment of Vista Outdoor (NYSE: VSTO), has announced the sale of its wood pellet manufacturing business, Fiber Energy Products, to Lignetics. Fiber Energy, which has been producing wood pellet fuel since 2006, has grown to manufacture BBQ and grilling pellets as well as heating pellets. The sale is part of Revelyst's GEAR Up transformation strategy, allowing the company to refocus on its most profitable brands and segments. Revelyst's President, Jordan Judd, stated that Lignetics will provide the necessary resources for Fiber Energy's growth, while the sale proceeds will be reinvested into Revelyst's power brands and product innovation.

MNC Capital has reaffirmed its commitment to acquire Vista Outdoor for $42 per share in an all-cash transaction. Despite multiple efforts, Vista's Board has not engaged with MNC and recently publicly rejected the offer. MNC's proposal represents a nearly 25% premium over Vista’s share price of $33.78 before the offer. MNC has secured financing and provided a merger agreement as requested by Vista. The offer remains open, and MNC has stated it will neither increase nor decrease the offer price. MNC questions Vista's intentions, suggesting the Board is not acting in shareholders' best interests by not considering the proposal, which is $700 million above market value.

Vista Outdoor's Board of Directors has urged stockholders to vote for the sale of The Kinetic Group to Czechoslovak Group (CSG) at the Special Meeting on July 23, 2024. The transaction, valued at $2.1 billion, promises $21.00 per share and participation in Revelyst's projected growth. The Board emphasizes that after extensive evaluations, the CSG deal offers higher value and certainty compared to MNC Capital’s final $42.00 per share offer, which is deemed inadequate and risky. The sale aims to unlock significant value for stockholders, providing them with robust returns and strategic opportunities.

Vista Outdoor announced an amendment to their merger agreement with Czechoslovak Group (CSG), increasing the purchase price for The Kinetic Group to $2.1 billion, adding $100 million to the initial offer. The cash consideration for Vista Outdoor stockholders also increased by $3 per share, totaling $21.00 per share. Vista Outdoor's Board of Directors unanimously recommended the CSG Transaction, which promises a $7-$16 per share increase in value compared to MNC's final offer of $42 per share. The CSG deal is expected to close by July 2024, pending stockholder approval and other customary conditions. The Board rejected MNC's proposal, citing its insufficient valuation of the Revelyst business and longer closing timeframe. Financial advisors confirmed the fairness of the CSG Transaction, which aims to maximize stockholder value while positioning Revelyst for future growth.

Vista Outdoor has received additional information from MNC Capital regarding MNC's final offer to acquire Vista Outdoor for $42.00 per share in an all-cash transaction. The Board is currently reviewing this information and the offer, alongside existing obligations under a merger agreement with Czechoslovak Group (CSG). No decision has been made yet on MNC's offer. The Board continues to recommend shareholders vote in favor of the CSG merger proposal. Morgan Stanley & Co. and Cravath, Swaine & Moore LLP are advising Vista Outdoor, while Moelis & Company and Gibson, Dunn & Crutcher LLP are advising the independent directors.

MNC Capital Partners, L.P. announced that it has delivered a Merger Agreement and the necessary financing commitments for a $42 per share all-cash proposal to Vista Outdoor (NYSE: VSTO). The financing commitments total approximately $3.2 billion, covering both debt and equity components needed for the transaction. MNC remarked that Vista's request for the Merger Agreement and Financing Commitments indicates its readiness to accept the $42 per share price. MNC aims to finalize the merger agreement expeditiously.

Vista Outdoor has announced the adjournment of its special stockholders meeting from July 2, 2024, to July 23, 2024. This extension is to allow further engagement with stockholders following a revised acquisition interest from MNC Capital. MNC Capital has proposed an all-cash transaction at $42.00 per share. However, Vista Outdoor's Board has requested additional information from MNC, including evidence of committed financing, which has yet to be provided. The Board continues to support the existing merger agreement with Czechoslovak Group (CSG) and urges stockholders to vote in favor of it. The Board will assess MNC’s proposal once all necessary information is received.