Agency consulting firm Glass Lewis recommends Vista Outdoor (NYSE: VSTOShareholders voted in favor of selling Kinetic Group to Czechoslovak Group, or CSG, as “the best option to maximize shareholder value.”
CSG recently raised its offer for Ammunition Works at Vista Outdoor (vsto) to $2.1 billion, or $21 per share in cash. The deal cleared all regulatory hurdles, including approval from the Committee on Foreign Investment in the United States (CFIUS).
The Glass Lewis recommendation appears to be little more than a formality, as Vista’s board of directors has already endorsed the new offer. However, shareholders still have the option to vote on either selling the Kinetic Group business, or selling the entire company to MNC Capital for $42 per share.
“The Vista Outdoor Board, acting as trustee for shareholders, should choose to implement the multinational transaction because it is in the best interests of all shareholders,” TIG Advisors, a major shareholder in VSTO, said in an open letter to the board.
Since CSG raised its price, MNC Capital has yet to make what the Vista Board of Directors (VSTO) deems a competitive offer and has made it clear that it will separate Revelyst and The Kinetic Group for the purpose of improving both businesses and unlocking additional value for shareholders.
“We believe it is critical that Revelist be allowed to trade as an independent, publicly traded company and realize the value we believe it will deliver… We urge shareholders to vote in favor of the proposal to adopt the transaction with CSG at the upcoming special meeting of shareholders,” Vista Outdoor (VSTO) said in a statement.
Shareholders will have the opportunity to vote on either transaction on July 23.