Vista Outdoor Inc.’s
VSTO,
stock fell 0.9% early Monday, after the provider of sports and outdoor products said its board has rejected an unsolicited bid received Feb. 19 from MNC Capital offering to acquire the company for $35 a share in cash. The offer was reported on Friday by the Wall Street Journal, which said it valued the company at $2.9 billion, including debt. The stock closed up 6.5% on Friday at $33.23. The board 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 (“Revelyst”) as a standalone public company to drive the greatest value for our stockholders,” the company said in a statement. The sporting products deal is expected to close in 2024, once the company’s shareholders and regulators give their approval. “We have been actively engaged with the Committee on Foreign Investment in the United States (“CFIUS”) and our team is working with CFIUS to obtain its clearance,” the company said. The MNC offer “significantly undervalues the company” and is not in the best interest of shareholders, said Chairman Michael Callahan. The stock has gained 14.6% in the last 12 months, while the S&P 500 has gained 27%.
