(Reuters) – Vista Outdoor said on Monday that possible pressure from investment firm MNC Capital might have forced one of the bidders for the company’s sporting products business to drop its $2 billion offer.
MNC’s allegations that the bidder violated certain contractual agreements may have restricted the party’s ability to make an offer for the sporting products unit, Kinetic Group, Vista said in a statement.
Vista did not disclose the name of the bidder. MNC Capital, whose offer to acquire Vista has been rejected thrice in the past, did not respond to a request for comment.
Vista Outdoor on Monday backed its bid to sell its sporting products unit, Kinetic Group, to Prague-based Czechoslovak Group in a $1.96 billion deal.
Vista, which had announced plans to split its outdoor and sporting products units into two separate companies in 2022, said it remained confident that the deal with CSG would receive clearance from the Committee on Foreign Investment in the U.S.
“CSG will be an excellent owner of The Kinetic Group with a strong commitment to U.S. manufacturing and its American workforce and deep expertise in supply chain excellence, ammunition manufacturing and support for NATO and allied nations,” Vista Chairman Michael Callahan said.
Since March, MNC Capital has made repeated attempts to buy the whole company, only to be snubbed by Vista on the grounds that it undervalued the company and its performance gear business, Revelyst.
Vista also noted on Monday that the alternative party disputes the merits of MNC’s allegations.
The company, which is valued at $2.10 billion, also rejected Czech gunmaker Colt CZ Group’s offer of $30 per share in November.
(Reporting by Granth Vanaik in Bengaluru; Editing by Mohammed Safi Shamsi)
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