MNC Capital, on Wednesday morning, June 26, increased its all-cash offer to outright acquire Vista to $42 per share, or about $3.2 billion. The enhanced offer follows Vista’s news that it received government clearance for the proposed sale of its ammunition business, The Kinetic Group, to Prague-based Czechoslovak Group a.s. (CSG).
In a statement, MNC said it believes that its acquisition of Vista is in the best interests of shareholders, employees and national security, and hence, decided to “make one final effort for such acquisition” by increasing its June 6 proposal from $39.50 per share all cash to $42.00 per share all cash. “MNC said that it cannot see any possible basis or reason to further raise it.”
On June 10, Vista rejected MNC’s $37.50-a-share offer, which had been upgraded from a previous offer, calling it unfavorable to the CSG spinoff plan.
In its statement Wednesday morning, June 26, MNC said its latest bid represented a premium of 55 percent to the VWAP (volume-weighted average price) from when Vista’s transaction with CSG was announced on October 16, 2023, to the last closing price before MNC’s initial offer on February 19, 2024. The revised offer also has an over 40 percent premium compared to the last closing price before MNC’s initial offer.
MNC said its revised proposal represented a premium of almost 25 percent to yesterday’s (May 25) closing price of $33.78.
MNC said, “MNC‘s revised proposal is all cash, has no regulatory issues and is not subject to any financing conditions. MNC holds secured debt and equity commitments more than sufficient to close the transaction and stands ready to provide those to Vista.
“MNC expects that the Vista Board will move forward expeditiously to sign a merger agreement on the terms proposed. MNC believes a definitive agreement can be executed in a matter of days.”
Vista still needs to respond to MNC’s increased bid.
