In a bold move, the Board of Directors at Vista Outdoor Inc have staunchly rebuffed the unsolicited acquisition proposal from Colt CZ Group SE. The proposal, valued at $30 per share, was promptly dismissed after thorough deliberation with financial and legal advisors.
The rejection is grounded in Vista’s steadfast commitment to the separation of its Outdoor Products and Sporting Products segments, which is expected to unlock significant stockholder value. The decision follows Vista Outdoor’s previous agreement to sell its Sporting Products business to Czechoslovak Group a.s. (CSG) for a staggering enterprise value of $1.91 billion in an all-cash transaction on October 15, 2023.
The Board’s resoluteness is further apparent as it deems the $30 per share proposal inadequate, citing its failure to adequately outline debt and equity financing details. The Board has taken a firm stance, declaring that the proposal significantly underestimates Vista’s true value.
Looking at the market’s response, VSTO shares demonstrated resilience, closing higher by 0.87% at $27.89 on Wednesday, a clear indication of investor confidence in Vista Outdoor’s resolute stance.