In response to the proposal, Vista released a statement indicating that it has not made a decision regarding the offer. Colt CZ's bid includes the intention to keep the company intact, opposing Vista's previously announced $1.91 billion deal to sell its sporting products business to privately held Czechoslovak Group (CSG) in October.
Colt CZ expressed dissatisfaction with the market's response to the CSG transaction, citing a significant drop in Vista's share price on October 16, 2023. In a letter to Vista's board, Colt CZ emphasized its commitment to preserving the company and allowing "New Vista" to maintain its listing in the U.S., providing continued benefits for existing shareholders.
The proposed deal, characterized as a "strategic combination," involves a $900 million share buyback program, slated to occur post-transaction. The buyback would be funded by $600 million in new equity issued at the transaction price and $300 million in debt. Under this arrangement, Vista shareholders would retain approximately 55% ownership in the newly formed company.
Vista stated that it would review Colt CZ's offer but maintained its endorsement of the CSG deal. The company assured its shareholders that no immediate action is necessary.
Colt CZ's proposal comes after it, along with a majority shareholder and its chairman, collectively acquired more than 5% of Vista shares in October. Colt CZ had acquired the U.S. gun brand Colt in 2021.
Presented by the team of employees of CzechTrade Austin, USA