GATES CAPITAL MANAGEMENT EXPRESSES CONTINUED OPPOSITION TO VISTA OUTDOOR'S PROPOSED SALE OF THE KINETIC GROUP TO CSG
Gates Capital Management, owning 9.6% of Vista Outdoor (NYSE: VSTO), has reiterated its opposition to the proposed sale of The Kinetic Group to Czechoslovak Group (CSG). In a letter to Vista's Board, Gates Capital expresses concerns that the transaction would have less value than the $42 all-cash offer from MNC Capital or a tax-free spin-off.
The investment firm urges Vista to:
- Release preliminary financial results for Q2 2024
- Set a new record date for shareholder voting
- Reconsider the proposed transaction
- Secure a higher price for The Kinetic Group, engage with MNC to sell the entire company, or revert to the original spin-off plan
Gates Capital Management, che possiede il 9,6% di Vista Outdoor (NYSE: VSTO), ha ribadito la sua opposizione alla vendita proposta del The Kinetic Group al Czechoslovak Group (CSG). In una lettera al Consiglio di Vista, Gates Capital esprime preoccupazioni sul fatto che la transazione avrebbe meno valore rispetto all'offerta entirely in contante di 42 dollari da parte di MNC Capital o a un'operazione di spin-off senza tasse.
L'azienda di investimento esorta Vista a:
- Pubblicare i risultati finanziari preliminari per il secondo trimestre del 2024
- Stabilire una nuova data di registrazione per il voto degli azionisti
- Riconsiderare la transazione proposta
- Assicurarsi un prezzo più elevato per The Kinetic Group, coinvolgere MNC per vendere l'intera azienda, o tornare al piano originale di spin-off
Gates Capital Management, que posee el 9.6% de Vista Outdoor (NYSE: VSTO), ha reiterado su oposición a la venta propuesta de The Kinetic Group al Czechoslovak Group (CSG). En una carta a la Junta de Vista, Gates Capital expresa su preocupación de que la transacción tendría menos valor que la oferta en efectivo de $42 de MNC Capital o una escisión libre de impuestos.
La firma de inversión insta a Vista a:
- Publicar los resultados financieros preliminares del segundo trimestre de 2024
- Establecer una nueva fecha de registro para la votación de los accionistas
- Reconsiderar la transacción propuesta
- Asegurar un precio más alto para The Kinetic Group, involucrar a MNC para vender toda la empresa, o volver al plan original de escisión
Gates Capital Management는 Vista Outdoor (NYSE: VSTO)의 9.6%를 소유하고 있으며, The Kinetic Group의 판매를 Czechoslovak Group (CSG)에게 제안하는 것에 대해 반대 입장을 재확인했습니다. Vista 이사회에 보낸 편지에서 Gates Capital은 이 거래가 MNC Capital의 42달러 전액 현금 제안이나 세금 없는 분할보다 가치가 낮을 것이라는 우려를 표명했습니다.
이 투자 회사는 Vista에 대해 다음과 같이 촉구합니다:
- 2024년 2분기 예비 재무 결과 발표
- 주주 투표를 위한 새 등록일 설정
- 제안된 거래 재검토
- The Kinetic Group의 더 높은 가격 확보, MNC와의 협력을 통해 전체 회사 매각, 또는 원래의 분할 계획으로 돌려 보내기
Gates Capital Management, détenant 9,6% de Vista Outdoor (NYSE: VSTO), a réitéré son opposition à la vente proposée de The Kinetic Group au Czechoslovak Group (CSG). Dans une lettre au conseil d'administration de Vista, Gates Capital exprime ses préoccupations selon lesquelles la transaction aurait moins de valeur que l'offre en espèces de 42 $ de MNC Capital ou une scission sans impôt.
La société d'investissement exhorte Vista à :
- Publier les résultats financiers préliminaires pour le deuxième trimestre 2024
- Fixer une nouvelle date d'enregistrement pour le vote des actionnaires
- Reconsidérer la transaction proposée
- Obtenir un prix plus élevé pour The Kinetic Group, s'engager avec MNC pour vendre l'ensemble de l'entreprise, ou revenir au plan de scission initial
Gates Capital Management, das 9,6% von Vista Outdoor (NYSE: VSTO) besitzt, hat seine Opposition gegen den vorgeschlagenen Verkauf von The Kinetic Group an die Czechoslovak Group (CSG) bekräftigt. In einem Schreiben an den Vorstand von Vista äußert Gates Capital Bedenken, dass die Transaktion weniger wert sein könnte als das Angebot von MNC Capital in Höhe von 42 US-Dollar in bar oder eine steuerfreie Abspaltung.
Das Investmentunternehmen fordert Vista auf:
- Vorläufige Finanzergebnisse für das 2. Quartal 2024 zu veröffentlichen
- Ein neues Stichtagsdatum für die Abstimmung der Aktionäre festzulegen
- Die vorgeschlagene Transaktion zu überdenken
- Ein höheres Angebot für The Kinetic Group zu sichern, mit MNC in Verhandlungen über den Verkauf des gesamten Unternehmens zu treten oder zum ursprünglichen Abspaltungsplan zurückzukehren
- Gates Capital Management owns a significant 9.6% stake in Vista Outdoor, indicating strong investor interest
- MNC Capital has made a $42 all-cash offer for Vista Outdoor, potentially providing higher value for shareholders
- Gates Capital Management opposes the proposed sale of The Kinetic Group to CSG, suggesting potential shareholder dissatisfaction
- The current transaction is believed to have less value than alternative options, potentially undervaluing the company
- Lack of updated financial results for Q2 2024 may hinder informed decision-making by investors
Gates Capital Management's opposition to the proposed sale of The Kinetic Group adds a significant dimension to the ongoing corporate strategies and valuations of Vista Outdoor. Firstly, Gates Capital Management owns nearly 10% of Vista Outdoor's outstanding shares, indicating substantial influence. The firm's preference for either a $42 all-cash offer from MNC Capital or a tax-free spin-off suggests that they believe these alternatives would yield higher value for shareholders compared to the sale to Czechoslovak Group.
From a financial perspective, the call for Vista Outdoor to release preliminary financial results for the quarter ended June 2024 is particularly important. This transparency would provide shareholders with the necessary data to make informed decisions. The suggestion to set a new record date could also democratize the decision-making process, potentially including more current shareholders in the vote. Both these actions can influence the company's stock price in the short term, as investors react to the new information and increased shareholder participation.
In the long term, the call to either secure a materially higher price for The Kinetic Group or revert to a spin-off plan demonstrates a strategic move to maximize shareholder value. The merger and acquisition space often sees such contention when major funds advocate for alternative strategies. If Vista Outdoor can negotiate a better deal or reconsider the spin-off, it could set a precedent for similar future transactions, impacting investor confidence and stock performance positively.
The opposition from Gates Capital Management introduces notable legal considerations that could impact Vista Outdoor. Shareholder activism often leads to significant legal maneuvering, especially when a substantial shareholder like Gates Capital Management expresses dissent. The letter cites the need for the company to act in the 'best interests of all shareholders,' which raises the stakes legally for Vista's board to either justify the current sale or consider the proposed alternatives more seriously.
Additionally, the request to release preliminary financial results and set a new record date could confront the board with legal obligations to provide complete and transparent information. Failure to comply can result in legal challenges, including potential lawsuits alleging breach of fiduciary duty. These legal complexities could delay the proposed sale and incur additional costs, affecting Vista Outdoor's overall financial health and stock performance.
Finally, engaging with MNC or revisiting the spin-off plan could involve lengthy legal negotiations and restructuring efforts. The legal framework underpinning these options may require due diligence and extensive shareholder consultations, adding layers of legal intricacies that investors must consider.
The full text of the letter follows:
July 19, 2024
Vista Outdoor Inc.
Attn: Board of Directors
1 Vista Way
Anoka, Minnesota 55303
Dear Members of the Board,
Gates Capital Management has been a long-term shareholder of Vista Outdoor, and currently beneficially owns 5,589,041 shares, or approximately
We cannot understand how any shareholder would vote for a transaction that we believe is certain to have less value than either the
We ask that Vista immediately release preliminary financial results for its quarter ended June 2024, including an updated balance sheet, so that investors can make an informed decision regarding the best path forward.
Finally, we believe Vista should set a new record date so that a larger percentage of current shareholders are eligible to participate in this important vote.
We continue to urge the Board to reconsider the transaction being proposed to shareholders at the upcoming special meeting and to act in the best interests of all shareholders by either securing a materially higher price for the Kinetic Group, engaging with MNC to sell the entire Company, or reverting to Vista's original spin-off plan.
Sincerely,
Jeff Gates
Managing Partner
Gates Capital Management
About Gates Capital Management
Gates Capital Management is an event-driven alternative asset manager for institutional and private clients globally. Gates Capital was founded in 1996 and today has more than
Cautionary Statement Regarding Forward-Looking Statements
This press release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein in any state to any person. The information herein contains "forward-looking statements". Specific forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and include, without limitation, words such as "may," "will," "expects," "believes," "anticipates," "plans," "estimates," "projects," "potential," "targets," "forecasts," "seeks," "could," "should" or the negative of such terms or other variations on such terms or comparable terminology. Similarly, statements that describe our objectives, plans or goals are forward-looking. Forward-looking statements are subject to various risks and uncertainties and assumptions. There can be no assurance that any idea or assumption herein is, or will be proven, correct or that any of the objectives, plans or goals stated herein will ultimately be undertaken or achieved. If one or more of such risks or uncertainties materialize, or if Gates Capital Management, Inc's ("Gates") underlying assumptions prove to be incorrect, the actual results may vary materially from outcomes indicated by these statements. Accordingly, forward-looking statements should not be regarded as a representation by Gates that the future plans, estimates or expectations contemplated will ever be achieved.
Media Contacts:
ASC Advisors
Taylor Ingraham / Morgan Davis
tingraham@ascadvisors.com / mdavis@ascadvisors.com
203-992-1230
Investor Contact:
Paul Lucas
Managing Director
plucas@gatescap.com
212-626-0290
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SOURCE Gates Capital Management
FAQ
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