Vista Outdoor Inc (NYSE: VSTO) said on Thursday that independent proxy advisory firm Glass Lewis & Co had recommended a shareholder vote in favor of the proposed sale of Vista Outdoor’s The Kinetic Group business to Czechoslovak Group (“CSG”).
“With CSG having further raised its offer price for The Kinetic Group, the goalposts have moved with respect to the implied valuation of the Company as a whole. Yet, MNC has not made a corresponding adjustment to its offer and instead has effectively maintained that its current offer price of $42.00 per share represents its best and final offer,” Glass Lewis stated in a report dated July 17th.
“Upon closer review of the Company’s circumstances, we believe the Company is at or close to a key inflection point. Given the recent management changes, coupled with signs that the Company is successfully executing its various strategic and cost-saving initiatives, we believe the Company should be poised to deliver on its turnaround efforts for the Outdoor Products Business,” the proxy advisory firm said.
“The support of Glass Lewis reaffirms our conviction that the pending transaction with CSG is in the best interest of Vista Outdoor stockholders. Glass Lewis shares our confidence in the compelling benefits of the transaction with CSG and the significant value of CSG’s increased offer to stockholders,” Vista Outdoor Inc said in a statement.
A special meeting of Vista Outdoor stockholders is to take place on July 23rd, the company said.
Stock Performance
The shares of Vista Outdoor Inc (VSTO) closed 1.84% ($0.70) lower at $37.27 in New York on Thursday.
The company’s total market cap now stands at $2.174 billion.
The shares have risen 26.04% so far this year.
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