Vista Outdoor Rejects Colt CZ Group's $30 Per Share Offer: Here's Why
Portfolio Pulse from Shivani Kumaresan
Vista Outdoor Inc's Board of Directors has rejected an unsolicited acquisition proposal from Colt CZ Group SE, which valued the company at $30 per share. The Board believes the offer undervalues Vista and lacks adequate financing details. Instead, they continue to recommend the sale of their Sporting Products business to Czechoslovak Group a.s. for $1.91 billion, a deal agreed upon on October 15, 2023. Vista Outdoor shares closed higher by 0.87% at $27.89.
November 30, 2023 | 12:24 pm
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Vista Outdoor Inc's Board has rejected a $30 per share acquisition offer from Colt CZ Group, considering it undervalued and lacking in financing details, while proceeding with the sale of its Sporting Products business to CSG for $1.91 billion.
The rejection of the acquisition proposal suggests confidence in the company's value and strategic direction, which could be viewed positively by investors. The Board's preference for the sale to CSG indicates a clear strategic path, potentially increasing investor confidence in the company's future. The slight increase in stock price on the day of the announcement may reflect initial positive market reaction.
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RELEVANCE 100