10:51 AM EDT, 06/10/2024 (MT Newswires) -- Vista Outdoor ( VSTO ) received a new and unsolicited cash offer from a private equity firm for its shooting sports division, while its board of directors rejected a sweetened takeover offer from MNC Capital Partners.

The maker of guns and outdoor equipment under brands such as Remington and Camelbak said on Monday a US private equity firm that was involved in the prior sales process for Kinetic Group in 2023 offered $2.01 billion for the sporting ammo business.

While the company remains bound to its merger agreement with Czechoslovak Group, or CSG, Vista Outdoor ( VSTO ) said the board determined that the new indication of interest would "reasonably be expected to lead to a superior proposal." Shares of Vista were up 1.2% in morning trade.

CSG offered to buy Vista's sporting business in October for $1.91 billion in cash. Vista Outdoor ( VSTO ) would need to pay a $47.75 million break fee to CSG if it were to exit the deal.

Currently the board is continuing to recommend the acquisition of The Kinetic Group by CSG, it said. Vista Outdoor ( VSTO ) "continues to be confident" that it will receive all required regulatory clearances and that other closing conditions will be met.

However, Vista Outdoor ( VSTO ) will postpone a special meeting of stockholders that was scheduled to be held on June 14 to July 2 to engage with the alternative party and communicate clearly with stockholders prior to the vote. "As always, the Vista Outdoor ( VSTO ) board is committed to maximizing value for stockholders," it wrote.

Separately, Vista Outdoor ( VSTO ) said it rejected MNC Capital's increased offer made last week to buy all of Vista Outdoor's ( VSTO ) outstanding shares for $39.50 in cash, valuing the deal at more than $3 billion. The offer represented a greater than 30% premium to Vista's closing price before MNC announced its initial offer on Feb. 19.

After a thorough evaluation, the board determined that MNC's new offer would "not be more favorable to Vista Outdoor ( VSTO ) stockholders from a financial point of view than, and would not reasonably be expected to be superior to" the CSG merger agreement, it said.

Price: 36.07, Change: +0.28, Percent Change: +0.80