Czech bidder bumps offer for Vista's ammo unit
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The Czechoslovakia Group (CSG) raised its bid for Vista Outdoor's ammunition unit from $1.96 billion to $2 billion, the company said Monday.
Why it matters: The Czech bidder is trying seal its deal ahead of a July 2 vote as a range of obstacles have emerged since it signed an agreement with Vista last October.
Zoom in: CSG said it nudged its offer up by $40 million, adding that the cash consideration piece of its bid is now 40% higher than the original agreement.
- Vista said it's also going to hand $77 million in cash back to shareholders as part of CSG's raised bid.
- Vista repeated its support of CSG's agreement and said it expects to receive government approval of the transaction.
Catch up quick: Earlier this year, MNC Capital offered to buy the entire company for about $3 billion, a bid it's since bumped to $3 billion-plus. In addition to ammunition, Vista also sells outdoor gear.
- MNC Capital has raised its bid three times, and Vista has rejected each one, saying the private equity firm is undervaluing the outdoor gear business.
- Private equity firm JDH Capital emerged this month with a $2 billion-plus bid for the ammunition business — an offer it quickly withdrew.
- The government is expected to issue its decision on the Vista-CSG deal later this month, though there's no guarantee on timing.
Between the lines: Proxy adviser ISS last week recommended to Vista shareholders that they abstain from the July 2 shareholder vote to approve the CSG deal and instead encourage the company to reengage with MNC.
What we're watching: If the U.S. government approves the CSG deal before the July 2 vote, it will be a big relief to Vista.
- If the government hasn't ruled by July 2, Vista and CSG are hoping shareholders will ignore ISS' advice and approve the transaction.
