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Vista Outdoor considers $30 per share merger offer from Colt CZ Group

EditorPollock Mondal
Published 11/23/2023, 02:47 AM
Updated 11/23/2023, 02:47 AM
© Reuters.

Vista Outdoor (NYSE:VSTO) Inc. is currently evaluating a takeover bid from Colt CZ Group SE, which has proposed a merger at $30 per share, alongside a $900 million buyback program to follow the transaction. This new offer presents a challenge to Vista's existing agreement to divest its Sporting Products division to Czechoslovak Group for $1.91 billion.

The board of Vista Outdoor is being advised by financial and legal consultants, including Morgan Stanley & Co (NYSE:MS)., Cravath Swaine & Moore LLP for Vista, and Moelis (NYSE:MC) & Company LLC with Gibson Dunn & Crutcher LLP for the independent directors, as they assess the merits of Colt CZ Group's proposal. Shareholders have been advised to hold off on any action while the board conducts its review.

In light of the merger proposition, Vista Outdoor's stock saw an uptick of over 2% in the extended trading session on Wednesday. The CEO of Colt CZ Group voiced concerns over potential loss in shareholder value if Vista proceeds with the sale of its Outdoor Products segment and advocated for their bid as the superior option for shareholders.

The company's cautionary stance regarding forward-looking statements is reflected in the June 12 proxy statement and SEC filings, underscoring the uncertainty inherent in such transactions. As Vista's board deliberates on this significant decision, they are weighing Colt's offer against the current Wall Street Moderate Buy consensus and an average price target of $31 for VSTO shares.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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