Revised Offer Not Subject to Financing
DALLAS – ECNETNews reports that on September 6, MNC Capital Partners, L.P. announced a significant increase to their all-cash purchase offer for Vista Outdoor Inc., proposing $43.00 per share. This comes despite ongoing challenges in the consumer market and Vista’s recent quarterly performance.
The announcement outlined several key points:
After determining on July 31 that MNC’s acquisition proposal for Vista might surpass the current deal with Czechoslovak Group a.s. (CSG), MNC and its partners have successfully completed their due diligence. They are now prepared to present a revised offer backed by a thoroughly negotiated Merger Agreement, which is ready for signature. This offer is fully financed, ensuring a seamless transaction process.
MNC asserts that the acquisition would benefit not only Vista’s shareholders but also its employees and stakeholders. As a US-owned entity, Kinetic, part of MNC’s acquisition plan, would avoid the challenges associated with foreign ownership and maintain essential relationships with governmental institutions. MNC also expressed confidence in Revelyst’s leadership and its strategic vision, emphasizing a strong commitment to invest in Revelyst’s future growth.
While MNC appreciates Vista’s recent efforts, there has been concern regarding the lack of engagement prior to this announcement. MNC expressed confusion over the Vista Board’s decision not to terminate the agreement with CSG when they had the opportunity, highlighting the requirement for prior notice to CSG before proceeding with any new deal. Additionally, there are doubts about achieving shareholder approval for a CSG transaction that involves speculative assets.
The communication concluded with a clear condition:
“MNC’s revised offer hinges on Vista’s Board notifying CSG by Monday, September 9, of their intention to proceed with the Merger Agreement at $43.00 per share. If this condition is not met, the revised offer will be retracted.”
