Vista Outdoor explores sale of sporting gear unit in strategic review
Adds investor comment in paragraphs 7, 8
July 30 (Reuters) -Vista Outdoor VSTO.N, which is in the process of selling its ammunition unit, said on Tuesday it was open to selling its outdoor sporting gear business and expecting an increased bid for the whole company from MNC Capital.
Vista expects investment firm MNC to raise its existing $3.2 billion buyout offer in "short order". The company had rejected that bid saying it undervalued its sporting gear unit, Revelyst.
The company also said Czechoslovak Group (CSG) was considering acquiring Revelyst, in addition to its current $2.15 billion bid for Vista's ammunition business, Kinetic Group.
Besides, Vista said it was still considering its previously announced plan of spinning off the two businesses.
The bidding war has been ongoing since the start of the year, with Vista rejecting multiple offers from MNC and supporting Prague-based defense firm CSG's bid for Kinetic Group, which raised national security concerns even though it was granted regulatory clearance in the United States.
The latest development came after CSG's bid for Kinetic Group faced opposition from several proxy advisory groups, including Institutional Shareholder Services, and shareholders such as Gates Capital Management.
"The standalone prospects for Revelyst really include a lot of material risks that I don't think the management team of Vista had done enough to convince us given their operating history," saidRaj Vazirani, founder of Vazirani Asset Management, which owns less than 1% of Vista Outdoor.
"...I think it would be strongly preferable to shareholders for CSG to make a bid for the entire company."
CSG had raised the base purchase price for Kinetic Group last week. Shortly after that, MNC said it was open to increase its offer if Vista would engage.
Vista said on Tuesday it would engage with MNC. Shares of the company rose as much as 5.6% to their highest level in more than two years at $41.
The company also postponed the special meeting, where shareholders were expected to vote on the CSG deal, to Sept. 13 from July 30.
MNC declined to comment and CSG did not immediately respond to a query fromReuters.
Morgan Stanley & Co is the financial adviser to Vista Outdoor, and Cravath, Swaine & Moore is the legal adviser.
Reporting by Savyata Mishra and Granth Vanaik in Bengaluru; Editing by Shilpi Majumdar
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
