Vista Outdoor (NYSE:VSTO) shares are in focus today after the outdoor sports and recreation products provider received a $2 billion+ offer from an undisclosed private investment firm (alternative party) for the Kinetic Group.
The Kinetic Group
Vista plans to rebrand itself as the Kinetic Group following the spinoff of its outdoor products business. The company announced the separation of its outdoor and sporting products segments in 2022. However, it has yet to fully complete the separation of its outdoor products unit.
A Barrage of Offers
The interest from the alternative party follows the recent $3 billion offer from MNC Capital Partners to acquire all outstanding shares of Vista. However, Vista rejected MNC’s offer today, noting that the proposal from the alternative party was superior.
In the mix is Vista’s agreement to offload its sporting products unit to Czechoslovak Group (CSG). Last month, CSG increased the base purchase price for the unit from $1.91 billion to $1.96 billion. Vista will have to pay $47.75 million if it decides to terminate the merger with CSG and enter into a transaction with the alternative party. Meanwhile, the alternative party has shown a willingness to fully commit to its proposal and is ready to finalize definitive agreements no later than June 14.
Here’s What to Keep an Eye on Next
For now, Vista’s board is continuing to recommend Kinetic’s acquisition by CSG. At the same time, the company is adjourning its special shareholder meeting that was slated for June 14. This move is aimed at enabling Vista to conduct further discussions with the alternative party.
What Is the Price Target for VSTO Stock?
This barrage of offers has pushed Vista’s share price nearly 33% higher over the past six months. Overall, the Street has a Moderate Buy consensus raVista Outdoor shares are in focus today after the company received a new offer and rejected a previous offer from MNC Capital Partners.ting on the stock, alongside an average VSTO price target of $38.33.
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