PRAGUE, March 26 (Reuters) - Czech gunmaker Colt CZ

Group said on Tuesday it had sold all its shares in

U.S. sporting and outdoor products group Vista Outdoor ( VSTO )

after a rejected bid last year, as it turned focus to its

planned acquisition of another group.

Colt CZ also reported on Tuesday revenue rose 1.8%

year-on-year in 2023 to 14.86 billion crowns ($638.5 million),

helped by a record fourth quarter and the start of a recovery in

the U.S. market.

Adjusted earnings before interest, tax, depreciation and

amortisation (EBITDA) fell 9.4% to 3.05 billion crowns last

year, in line with the company's outlook. The company proposed

an unchanged 30 crown per share dividend.

Colt CZ is forecasting revenue to rise up to 19.8% on a

standalone basis and by up to 48.1% when factoring the expected

contribution of its planned acquisition of Czech small-calibre

ammunition maker Sellier & Bellot.

If the deal completes as expected by mid-2024, revenue

should reach a range of 20.0 billion to 22.0 billion crowns and

adjusted EBITDA should be in a range of 4.3 billion to 4.7

billion crowns in 2024.

The $820 million deal for Sellier & Bellot has taken focus

off a cash-and-stock merger offer to Vista rejected last

November.

Investment firm MNC Capital has since made a bigger offer

while Vista remains in the process of selling its sporting goods

business to privately held Czech defence and civil manufacturing

firm Czechoslovak Group (CSG) in a deal preceding any offer.

"Once we saw our bid was topped we decided there was no

further logic to hold the stake," Colt CZ Chief Executive Jan

Drahota said, adding the last shares were sold this week. "As of

today we don't have any more shares."

Colt CZ disclosed in October 2023 it held a 2.4% stake in

Vista Outdoor ( VSTO ) and it and connected reporting persons had a stake

exceeding 5%. On March 12, it said the stake had fallen below 5%

and that Colt CZ's stake was 1.9%.

Drahota did not comment on the other reporting persons,

which included him and Colt CZ shareholder Rene Holecek.

Analysts said the focus on Sellier & Bellot was a better fit

as Colt CZ expands in the small-arms ammunition business and

seeks more sales in the military and law enforcement segment.

Firearm sales fell 10.4% last year, largely due to lower

demand in the key U.S. market.

Shares in Colt CZ ticked 0.2% lower on Tuesday and are up

over 10% in the past year.

($1 = 23.2720 Czech crowns)