MNC Capital offers to acquire Vista for $2.5 billion in latest bid

Investment firm MNC Capital said on Saturday it has increased its all cash buyout offer for Vista Outdoor VSTO to $43 per share from $42 per share.

The offer values Vista at $2.51 billion, a 12.30% premium over Vista's last closing price of $38.29 on Friday, according to Reuters calculation and LSEG data.

The firm said it sent a letter to Vista on Friday stating, "MNC is now prepared to offer an increased all-cash purchase price of $43.00 per share for Vista, despite substantial market headwinds for consumer spending and softness in Vista's recent quarterly results."

Vista said its board received a proposal from MNC on Friday evening that expires on Monday.

"The 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," it said in a statement, adding the board will continue discussions with MNC and other parties.

Vista previously rejected the firm's buyout offer of $3.2 billion or $42 per share stating it undervalued Vista's sporting gear unit, Revelyst.

The Prague-based defense firm Czechoslovak Group (CSG) was considering acquiring Revelyst, in addition to its current $2.15 billion bid for Vista's ammunition business, Kinetic Group.

The bidding war has been going on since the start of the year, with Vista rejecting multiple offers from MNC and supporting CSG's bid for Kinetic, which raised national security concerns even though it was granted regulatory clearance in the U.S.

Proxy advisory firm Glass Lewis has recommended Vista shareholders vote in favor of the proposed merger of the company's ammunition unit with CSG, while Institutional Shareholder Services has recommended against the same.

Vista launched a strategic review, and postponed the special meeting where shareholders were expected to vote on the CSG deal to Sept. 13 from July 30 after several previous postponements.

The latest development adds to the months-long saga for the parent of Federal Ammunition and Remington Ammunition against the backdrop of rising demand for military supplies since the escalation of the Russia-Ukraine conflict in 2022.

MNC is partnering with an unnamed private equity firm which would own the Revelyst business.

MNC gave Vista until Monday to inform the CSG side about whether it intends to sign a deal with MNC. It will withdraw its revised offer if the deadline is not met.

It also reiterated that it has committed financing, which is roughly half equity and half debt, a source familiar with the matter said.