MNC Is Committed To Acquisition of Vista Outdoor at $42 Cash Per Share
10 Julio 2024 - 6:00AM
Business Wire
MNC’S Fully Financed All-Cash Offer Will Remain
Open for Vista to Accept
MNC Commits to Not Lower $42 Per Share
Price
MNC Questions Vista’s Complete Failure to
Engage and Its Other Actions
MNC Capital, L.P. (“MNC”) announced today that it continues to
be committed to its fully financed $42 per share all-cash offer for
Vista Outdoor Inc. (NYSE: VSTO) and that its offer will remain open
for the Vista Board to accept. Since delivering executed financing
commitments and a merger agreement on July 1st (as publicly
requested by Vista), MNC received no further inquiry,
communication, or engagement from Vista before the public
rejection of its offer two days ago.
MNC commits to not lowering its $42 per share price, while
affirming that it has absolutely no intention to further increase
its price and cannot see any possible reason or basis for doing
so.
The $42 per share price represented a premium of almost 25% to
the closing price of $33.78 the day before MNC proposed it on June
26. The market had heard everything that Vista had to say about its
prospects and alternatives and valued Vista at $33.78 per share, or
$500 million in the aggregate below our all-cash offer. Our offer
is $700 million above the market value of Vista the day before our
initial proposal.
MNC questions whether the Vista Board is acting in good faith,
and why Vista requested financing commitments and a merger
agreement if it had not been prepared to accept MNC’s $42 per share
proposal. MNC has for months been making an earnest effort to offer
Vista shareholders an all-cash option at a substantial premium to a
share price that was fully-informed with respect to other
alternatives. Every time Vista has taken actions other than
accepting our proposal, the Company’s share price has gone down,
which has happened again over the past two trading days.
MNC believes that Vista has not been acting in its shareholders’
interest by failing to engage with MNC on its fully-financed and
all-cash $42 per share proposal for the Company. Further evidence
of this was Vista’s disclosure that since MNC increased its
proposal, the Company continued to engage with competing bidders
for the Kinetic business while being unwilling to engage with MNC.
It is clear that the Vista Board never intended to seriously
evaluate MNC's proposal.
MNC remains committed to a transaction that it strongly believes
provides shareholders with compelling value and hopes that the
Vista Board will engage to accept our proposal, which is in the
best interests of shareholders.
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Media Contacts: Michael Landau / Lauren Odell, Gladstone
Place Partners (212) 230-5930