See what’s clicking on FoxBusiness.com
Vista Outdoor is considering “strategic alternatives” after several shareholders criticized the sale of its ammunition division to Czech holding company Czechoslovak Group (CSG).
Vista’s decision came on the same day the company was scheduled to hold a shareholders’ meeting to vote on the sale of Kinetic Group to CSG. Vista’s two largest shareholders, Gates Capital Management and GAMCO Asset Management, publicly opposed the deal but supported MNC Capital Management’s proposal to acquire Kinetic and its outdoor division, Levelist, for $3.2 billion in cash.
Remington .223 caliber cartridge. (Silas Stein/Photo Alliance via Getty Images/Getty Images)
“PVC believes that MNC Capital’s fully-funded acquisition proposal of $42 per share in cash is superior to Kinetic Group’s proposed sale to CSG,” GAMCO said in a recent letter to Vista’s board of directors. “We recommend that the board reconsider its position and negotiate with MNC Capital.”
Remington’s sale of its ammunition division to an overseas buyer is raising some eyebrows.
One option Vista is considering before the next shareholders’ meeting is to reopen negotiations with MNC in an attempt to extract a larger proposal from the venture capital group. MNC has said it is open to making a higher offer, but currently sees no reason to increase its current offer.
Vista has decided to postpone its general shareholders meeting until September 13th, the sixth time the company has done so this year. Vista remains adamant that it remains committed to “acting in the interests of the company and its shareholders.”
Click here to get FOX Business on the go
CSG did not respond to FOX Business’ request for comment.
