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MNC Capital said on Saturday it had increased its cash buyout offer for Vista Outdoor (New York Stock Exchange:VSTO) to $43 per share from $42 per share.
The investment firm’s offer values the American recreational products manufacturer at $2.51 billion, a 12.30% premium to the firm’s last close of $38.29 million. on Friday.
MNC added that it was increasing its offer for Vista (VSTO), “despite significant market headwinds for consumer spending and weakness in Vista’s recent quarterly results.”
The investment firm said it had given Vista (VSTO) until Monday to inform Czechoslovak Group (CSG) whether it intends to sign a deal with MNC. It will withdraw the revised offer if the deadline is not met.
Vista (VSTO) said it had received MNC’s latest offer, but found that “the public communication by MNC just hours after the proposal was delivered, as well as the deadline on Monday, continues to be a frustrating pattern and is not constructive.”
The parent company of Federal Ammunition and Remington Ammunition had previously rejected MNC’s $42-a-share takeover offer in favor of a higher bid for its ammunition unit, Kinetic Group, from CSG.
While CSG has only submitted a bid for Kinetic Group, MNC is looking to acquire the entire company. MNC is partnering with an unnamed equity firm that would own the Revelyst business, Vista’s (VSTO) sports equipment unit.
CSG has also been considering an acquisition of Revelyst with potential partners, in addition to its proposed acquisition of Kinetic Group.
The bidding war has been ongoing since the beginning of the year, with Vista (VSTO) having rejected multiple MNC offers for CSG’s. However, the Prague-based defense firm’s bid has raised national security concerns despite having received regulatory approval.
Proxy advisory firm Glass Lewis has recommended that Vista (VSTO) shareholders vote in favor of the sale of its Kinetic Group to CSG. Institutional Shareholder Services has recommended against a deal with CSG.
Vista (VSTO) launched a strategic review in July and postponed its special meeting where shareholders were expected to vote on the CSG deal from July 30 to Sept. 30, the latest in a series of postponements.