Vista Outdoor Inc (VSTO) is trending up in extended hours after Colt CZ Group SE proposed a business combination that would enable the outdoor sports and recreation products company to recapture the lost shareholder value.Here’s what Colt proposed todayJan Drahota – the Chief Executive of Colt said in a letter to Vista Outdoor today that his superior proposal would value each of its share at $30 that translates to a near 20% premium on their previous close.Vista shareholders will own 55% of the new Vista that would have a net leverage of 1.8 times the LFY adjusted EBITDA, he added.The news arrives only weeks after Vista Outdoor reported a 13% annualised decline in its revenue in the third quarter. Its shares are currently down more than 20% versus their year-to-date high.Colt currently has a 5.7% stake in the New York-listed firm.Vista Outdoor was hit hard last monthThe strategic combination that Colt proposed on Wednesday includes a $900 million buyback – $600 million of which will be funded via new equity issued and the remaining via debt.Last month, Vista Outdoor was hit hard following a $1.91 billion all-cash with Czechoslovak Group to sell its Sport Products segment, months after announcing plans of splitting the company. According to Drahota:
We would keep the company together. With separation of Sporting Products segment, remaining Outdoor Products segment will be subscale as a standalone public company with substantial risk.
Choi Yun Jung VP of Vista Outdoor Inc. $VSTO just acquired 10K shares, growing their position by 100% https://t.co/UgKpyAGDcm
— X-Files Market Investigators (@market_x_files) November 17, 2023
On December 14th, Vista Outdoor will present at the ROTH MKM 12th Annual Deer Valley Event.More By This Author:Safety Shot Stock Ends 25% Down On Short Seller Report Binance Outflows Surpass $1.0 Billion ‘Countdown To Insolvency Has Begun’ Platinum Prices Forecast: Set To Explode As Supply Deficit Widens
