Vista Outdoor rejects MNC Capital offer, sticks with plan to sell outdoor products business

Vista Outdoor (NYSE:VSTO) fell in early trading on Monday after the sporting goods retailer announced that its board rejected an unsolicited acquisition offer from MNC Capital at $35.00 per share.

The Vista Outdoor Board said it continues to recommend the acquisition of the Sporting Products business by Czechoslovak Group a.s. and remains committed to the strategy of standing up the Outdoor Products business as a standalone public company to drive the greatest value for stockholders.

The acquisition of the Sporting Products business by CSG is expected to close in calendar year 2024, subject to approval of Vista Outdoor’s stockholders, receipt of necessary regulatory approvals and other customary closing conditions.

"We have been actively engaged with the Committee on Foreign Investment in the United States and our team is working with CFIUS to obtain its clearance. As previously stated, we remain confident in our ability to receive all necessary regulatory approvals, including with respect to CFIUS, and to satisfy all closing conditions."

The Vista Outdoor (VSTO) board noted that it rejected the MNC Capital offer following careful review with an experienced team of financial and legal advisors. The board determined that the transaction contemplated by MNC Capital’s indication of interest significantly undervalues the company and is not in the best interest of our stockholders.

Shares of Vista Outdoor (VSTO) rose 6.51% on Friday after the maker of sporting goods and ammunition received the unsolicited takeover offer for $2.9B including debt. In premarket action on Monday, VSTO showed a 1.01% decline to $33.11.