Vista Outdoor rejects Colt CZ's merger offer

Colt CZ SE

30/11/2023 07:47

Nov 30 (Reuters) - U.S. sporting and outdoor products
group Vista Outdoor's  VSTO.N  board has rejected a
cash-and-stock merger offer from Czech gunmaker Colt CZ Group
 CZG.PR , the company said.
    Vista's board said in a company filing on Wednesday evening
that it maintained its recommendation to sell its sporting
products division to another Czech company, Czechoslovak Group
(CSG), in a $1.91 billion deal announced in October.
    Colt CZ had made its offer to Vista last week, proposing to
keep the U.S. company whole and valuing its shares at a 16%
premium.
    "The Board of Directors has determined that the (Colt CZ
proposal) would not be more favourable to Vista stockholders
from a financial point of view than the transactions
contemplated by the CSG (agreement) and does not provide a basis
for engagement with Colt CZ," Vista Chief Executive Gary
McArthur said in a letter posted on the company's website. 
    "The Board of Directors is therefore rejecting the
(proposal)."
    Vista said CSG's acquisition of the sporting products
division should close in 2024 pending shareholder and regulatory
approvals.
    Vista said Colt CZ's offer did not take into account the
value created by splitting the outdoor and sporting divisions,
and the valuation of $30 a share in the proposal undervalued the
company.
    Vista shares have climbed 8.3% since Colt CZ's offer but are
down almost 15% since the deal with CSG was announced, closing
Wednesday at $27.89. 
    Prague-listed Colt CZ shares have dropped 2.0% since its
proposal to Vista.
    

 (Reporting by Jason Hovet in Prague; Editing by Sharon
Singleton)
 ((jason.hovet@thomsonreuters.com;))