MNC Capital raises offer in heated battle for Remington ammunition maker

A fierce takeover battle is underway for the US ammunition group Vista Outdoor, which owns the iconic Remington brand. Investment firm MNC Capital has upped the ante by raising its unsolicited offer to $39.50 per share, valuing the company at over $3 billion. This move is seen as an attempt to disrupt the $2 billion acquisition deal by Czech defence group Czechoslovak Group (CSG).

Vista had previously agreed to sell its ammunition business Kinetic to CSG, but MNC’s increased offer has thrown a wrench into the deal. The company plans to list its outdoor products business separately, including brands like Bushnell.

However, the proposed acquisition has raised concerns among US lawmakers, including former secretary of state Mike Pompeo and senator JD Vance, who fear foreign ownership of a key US munitions supplier. CSG, known for its military equipment in Ukraine, has been accused of ties to the Kremlin and industrial espionage, allegations the company denies.

Despite the controversy, Vista remains confident in securing approval from the Committee on Foreign Investment in the United States (Cfius) and expects the deal to close this year. A shareholder vote on the CSG offer is scheduled for June 14.

MNC Capital, led by managing director Mark Gottfredson, is backed by a diverse group of investors, including banks, private equity firms, and family offices. The firm plans to fund the deal with $1.5 billion in equity, highlighting its commitment to providing an American alternative in the takeover battle.

As the battle for Vista Outdoor heats up, shareholders and industry experts are closely watching the developments, with shares in the company rising 3% in response to the latest offer. Stay tuned for more updates on this high-stakes corporate showdown.