What's Going On With Vista Outdoor Stock Monday?

Vista Outdoor Inc. VSTO shares are trading higher after the company announced an amendment to its merger agreement with Czechoslovak Group a.s. (CSG), increasing the base purchase price for The Kinetic Group business by $40 million to $2 billion.

This amendment also raises the cash consideration for Vista Outdoor stockholders by $2.00 per share, from $16.00 to $18.00, reflecting a 12.5% increase.

According to the amended agreement, Vista Outdoor stockholders will receive one share of Revelyst common stock and $18.00 in cash per Vista Outdoor share at the closing of the CSG transaction.

Additionally, the company will return an extra $77 million of excess cash to its stockholders. This enhanced return is in addition to the increased purchase price from CSG.

Vista Outdoor’s Board of Directors has reaffirmed its commitment to the CSG transaction, emphasizing the benefits for stockholders.

Also Read: Vista Outdoor Rejects MNC Capital’s Acquisition Proposal

The revised terms include a $2 billion purchase price, up from $1.91 billion, and $18.00 in cash per share at closing, a $5.10 increase from the original offer.

The transaction allows stockholders to benefit from the company’s excess cash generation before closing.

CSG’s acquisition of Vista Outdoor’s ammunition brands ensures continued support for American manufacturing and the workforce.

The transaction is expected to close in 2024, pending approval from Vista Outdoor’s stockholders, clearance from the Committee on Foreign Investment in the United States (CFIUS), and other customary conditions.

Price Action: VSTO shares traded higher by 2.20% at $34.88 at last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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