Czech gunmaker Colt CZ makes offer for Vista Outdoor

Colt CZ SE

23/11/2023 08:05

PRAGUE, Nov 23 (Reuters) - Czech gunmaker Colt CZ Group
 CZG.PR  has made a takeover offer to Vista Outdoor  VSTO.N ,
valuing the U.S. sporting and outdoor goods group at about $1.7
billion, according to Reuters calculations. 
    Vista said in a statement it had not made any determination
about the $30 per share proposal, which is at a premium to its
last closing price of around $25.75, though below a 2023 high of
$33.78 hit in September.
    Colt CZ said it proposed keeping the company together,
scrapping Vista's planned sale of its sporting products business
to privately held Czechoslovak Group (CSG), announced in October
in a $1.91 billion deal.
    "The market's view of the Czechoslovak Group transaction was
clear in its reaction to the announcement, which resulted in the
rapid fall in (Vista's) share price on October 16, 2023," Colt
CZ said in a letter to Vista's board published on its website
late on Wednesday.
    "We would keep the company together, allowing continued
upside for current Vista shareholders with the 'New Vista'
retaining its listing in the U.S."
    Colt CZ said its offer included a $900 million share buyback
programme that it would be conducting after the transaction had
closed, funded by $600 million of new equity issued at the
transaction price and $300 million of debt.
    Vista said it would review Colt CZ's proposal but that it
had not made any change in its recommendation for the CSG deal.
    "Vista Outdoor's Board of Directors remains committed to
acting in the best interests of Vista Outdoor stockholders," it
said. "Vista Outdoor stockholders do not need to take any action
at this time."
    When announcing the sale of its sporting products business
on Oct. 16, Vista also cut its full-year sales forecast.
    Colt CZ, along with a majority shareholder and its chairman,
together acquired more than 5% of Vista shares, they announced
in October.
    The Czech group acquired U.S. gun brand Colt in 2021.
    Colt CZ said on Thursday its adjusted nine-month earnings
before interest, tax, deprecation and amortisation (EBITDA) fell
17.3% year-on-year to 1.9 billion crowns ($84.8 million), as a
recovery in the U.S. commercial market had been slower than
expected.    
    ($1 = 22.4040 Czech crowns)

 (Reporting by Jason Hovet
Editing by Mark Potter)
 ((jason.hovet@thomsonreuters.com;))