Jul 8, 2024 - Business

Czech group hikes offer again for Vista Outdoor's ammo unit

The Czechoslovakia Group (CSG) raised its offer to buy Vista Outdoor's ammunition business to $2.1 billion as the bidding war continues to heat up.

Why it matters: The Czech arms dealer is trying to ensure that Vista shareholders back its deal over a rival offer for the entire company.

Zoom in: CSG bumped its offer by $100 million and increased its cash payment to Vista shareholders by $3 to $21 per share.

Vista reiterated that the company recommends CSG's agreement over a rival offer from MNC Capital.
MNC Capital raised its offer late last month to $42 per share, or $3.2 billion for the entire company. In addition to its ammo unit, Vista has an outdoor gear business called Revelyst. Vista Outdoor shares are trading around $37.
Vista shareholders are set to vote on the CSG deal on July 23.

Yes, but: Proxy advisers are recommending that shareholders abstain from the vote and encourage the company to engage with MNC Capital.

Glass Lewis previously recommended that shareholders approve the deal. Last week, it updated its recommendation to "abstain," the same view as fellow proxy adviser ISS.

What we're watching: The ball is now in MNC Capital's court to raise its offer even higher ahead of the shareholder vote.