Vista Outdoor Stock Jumps as MNC Capital Raises Takeover Offer Amid Bidding War

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Aaron McDade
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Published June 26, 2024
Cartridges in .223 Remington caliber lie in an ammunition box of a sports shooter

Silas Stein / picture alliance via Getty Images

Key Takeaways

  • Vista Outdoor shares are surging in premarket trading after MNC Capital said it's raising its all-cash offer for the full company to $42 per share, or about $3.2 billion.
  • On Monday, Vista said that the Czechoslovak Group had increased its offer for The Kinetic Group, one of Vista's subsidiaries, to $2 billion.
  • MNC said Wednesday that it believes it can come to a final agreement with Vista "in a matter of days," even though the sporting goods and ammunition company said Monday that it was "fully committed" to its deal with the Czechoslovak Group.

Shares of Vista Outdoor (VSTO) are rising in premarket trading Wednesday after MNC Capital said it's raising its all-cash offer for the full company to $42 per share, about $3.2 billion.

The raised offer from MNC comes just two days after Vista said that the Czechoslovak Group had increased its offer for The Kinetic Group, one of Vista's subsidiaries, to $2 billion.

Vista Receives Multiple Offers

Vista, a sporting goods and ammunition company that operates a number of brands including CamelBak and Remington, has received and rejected several offers so far this year.

MNC has made a number of offers for the entire company, while CSG has looked to buy just The Kinetic Group, the division that houses a number of firearms and ammunition brands like Remington.

Vista said Monday that it was "fully committed" to the CSG deal and encouraged shareholders to vote in favor of the transaction, but it had previously postponed special meetings to discuss and potentially approve a $1.96 billion CSG offer when another unnamed company offered $2.01 billion for The Kinetic Group.

MNC's raised offer may also have been spurred by the Tuesday announcement that the Committee on Foreign Investment in the United States (CFIUS) cleared the transaction for the Kinetic Group to be sold to CSG, saying that there were "no unresolved national security concerns."

Vista shares, which have risen 14% in 2024 to $33.78 through Tuesday's close, were up a further 10% to $37.26 about 45 minutes before the opening bell Wednesday.

Article Sources
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  1. Business Wire. "MNC Capital Increases All-Cash Offer to Acquire Vista Outdoor to $42 Per Share."

  2. Business Wire. "CSG Increases Purchase Price for The Kinetic Group Business to $2 Billion."

  3. Vista Outdoor. "Vista Outdoor Receives $2+ Billion Offer from an Alternative Party for The Kinetic Group."

  4. Vista Outdoor. "CFIUS Clears Sale of The Kinetic Group to CSG."

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