Vista Outdoor (NYSE:VSTO) shares are up more than 2% premarket Monday after the company said it has rejected a fresh takeover proposal by investment firm MNC Capital.
MNC expressed interest in acquiring Vista Outdoor in an all-cash transaction for $39.50 per Vista Outdoor share.
Vista said that after thoroughly evaluating the proposal, it determined MNC's latest indication of interest would not be more favorable to Vista Outdoor stockholders from a financial point of view than, and would not reasonably be expected to be superior to, the deal completed to sell its sports equipment division to Czechoslovak Group for $1.96 billion.
"Vista Outdoor filed a supplemental presentation with the U.S. Securities and Exchange Commission (SEC) highlighting the company's extensive engagement with MNC and the reasons for the Board's determination that MNC's latest indication of interest continues to undervalue the Company," said Vista.
In a separate release Monday, Vista confirmed the receipt of a $2+ billion indication of interest from a U.S.-based private investment firm for The Kinetic Group.
"The Board of Directors has determined the indication of interest from the alternative party would reasonably be expected to lead to a superior proposal and meets the standard for engagement under the terms of the CSG merger agreement," they added.