Maxim Labkouski
Outdoor view (New York Stock Exchange:VSTO) announced that it has signed an amendment to the merger agreement with Czechoslovak Group AS, which increased the purchase price CSG will have to pay for the acquisition of The Kinetic Group’s business by $100 million, to $2.1 billion. The amendment increased the cash consideration to $21.00 from $18.00 cash per Vista Outdoor share (VIEW) stock.
It is worth noting that Vista Outdoor’s (VSTO) board of directors also unanimously rejected MNC Capital’s final offer for the company as inadequate and opportunistic.
The company noted that the CSG Transaction crystallizes “significant value” and mitigates future market risk for The Kinetic Group. Each of Vista Outdoor’s (VSTO) financial advisors issued an opinion on the fairness, from a financial standpoint, of the consideration in the CSG Transaction to Vista Outdoor (VSTO) equity holders. It was noted that the CSG Transaction was the result of a comprehensive, multi-stage competitive process, which included the participation of 26 potential buyers.
Vista Outdoor (VSTO) and CSG have received all required regulatory approvals under the merger agreement and are prepared to close in July, subject to receipt of shareholder approval and satisfaction of other customary closing conditions.
Vista Outdoor (VSTO) shares closed at $37.03 on Friday and are up more than 25% year to date.