GAMCO Sends Letter to Vista Outdoor Inc.
29 Julio 2024 - 7:00AM
Business Wire
GAMCO Asset Management Inc. (“GAMCO”), an affiliate of GAMCO
Investors, Inc. (OTCQX: GAMI), and certain other affiliates own, on
behalf of their clients, approximately 1.05% of the outstanding
common stock of Vista Outdoor Inc. (NYSE: VSTO) (the “Company”). On
July 26, 2024, GAMCO sent a letter to the Company’s Chairman of the
Board. A copy of the letter is referenced herein.
Mr. Michael Callahan Chairman of the Board
Vista Outdoor, Inc.
Dear Michael:
GAMCO Asset Management Inc. (“GAMCO”), on behalf of its
clients, and certain of its affiliates owns approximately 613,207
shares of Vista Outdoor representing approximately 1.05% of Vista’s
common stock outstanding.
We are writing to let you know that GAMCO’s Proxy Voting
Committee (“PVC”) intends to vote “Against” the pending acquisition
of The Kinetic Group by the Czechoslovak Group (CSG). The PVC views
MNC Capital’s fully financed $42 per share all-cash offer as
superior to the proposed sale of The Kinetic Group to CSG. We
encourage the board to reconsider its position and engage with MNC
Capital.
In short, amongst the issues the PVC considered were that the
sale of The Kinetic Group to CSG leaves shareholders open to
significant execution risk with respect to management’s planned
turnaround of stand-alone Revelyst. We believe shareholders have
not been fully informed about the potential extent of execution
risk involved in the financial targets laid out for Revelyst,
especially since the company will be led by a CEO with no previous
experience as the CEO of a public company.
Furthermore, we believe that the $42 offer from MNC Capital
offers fair certainty values for both businesses of Vista Outdoor
and hold the view that if investors believed management’s ambitious
Revelyst story, there would be a much higher public valuation of
Revelyst (true valuations can be seen after each rejection of MNC
all-cash bids). The valuation disconnect between investors and the
board (along with its advisors) may stem from Vista’s history of
missing financial targets and overpaying on outdoor acquisitions,
which has led to significant value destruction.
GAMCO will vote “Against” the sale of The Kinetic Group to
CSG at the July 30, 2024 special meeting of stockholders.
Sincerely,
/s/ Robert Leininger
Robert Leininger, CFA Chairman of Proxy Voting
Committee GAMCO Asset Management Inc.
GAMCO Investors, Inc., through its subsidiaries, manages assets
of private advisory accounts (GAMCO), mutual funds and closed-end
funds (Gabelli Funds, LLC) and is known for its Private Market
Value with a Catalyst™ style of investment.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240729042529/en/
Robert Leininger Chair, Proxy Voting Committee (914) 921-7754
For further information please visit www.gabelli.com