Vista Outdoor Rejects MNC's $39.50/share Offer; Confirms $2 Bln Alternative Party Offer For Kinetic

(RTTNews) - Vista Outdoor Inc. (VSTO) Monday said its Board of Directors rejected MNC Capital's latest indication of interest in acquiring the company in an all-cash transaction for $39.50 per Vista Outdoor share.

Separately, the company confirmed that it received an indication of interest from an alternative party, a U.S. based private investment firm, to acquire Kinetic Group for $2.01 billion in cash, on a cash-free, debt-free basis. The company is already in a merger deal with Czechoslovak Group a.s. or CSG for Kinetic Group .

According to the company, MNC's latest indication of interest would not be more favorable to its stockholders from a financial point of view than, and would not reasonably be expected to be superior to, the transactions contemplated by the CSG merger agreement.

Regarding the Kinetic Group deal, the company said the alternative party stated that it would commit to fully supporting the purchase price and is prepared to execute definitive agreements no later than June 14.

The indication of interest from the alternative party is expected to lead to a superior proposal and meets the standard for engagement under the terms of the CSG merger agreement.

The alternative party was involved in the prior sales process for Kinetic Group in 2023.

If Vista Outdoor determine to terminate the merger agreement with CSG and enter into a transaction with the alternative party, Vista Outdoor will pay the $47.75 million break fee CSG.

Vista Outdoor further said it remains bound by the terms of the merger agreement with CSG, and that its Board continues to recommend the acquisition of Kinetic Group by CSG.

The company continues to be confident that it will receive clearance from the Committee on Foreign Investment in the United States with respect to the proposed transaction with CSG and that all other closing conditions will be satisfied.

The Company will adjourn the special meeting of stockholders scheduled to be held on June 14 to July 2, enabling it to engage with the alternative party and communicate clearly with stockholders prior to the vote.