AnthiaCumming
Vista Outdoor Inc. (NYSE:VSTO) clarified on Thursday that it decided to separate Revelyst and The Kinetic Group for the purpose of optimizing both businesses and unlocking additional value for stockholders. Fundamentally, the board believes the value of Revelyst is not yet captured by Vista Outdoor’s (VSTO) stock price today, as the two businesses have not yet separated.
“We believe it is critical to allow Revelyst to trade as a pure-play standalone publicly traded company in order to trade in line with its peers, attract its natural owners, and achieve the value that we are confident it will deliver for stockholders.”
The company believes that stockholder approval of the sale of The Kinetic Group to CSG will enable stockholders to retain the ability to realize a potential change of control premium for Revelyst in the future. The board noted that if it believed it were strategically and financially beneficial to stockholders to sell Revelyst, it would engage in a thorough and competitive process to do so.
The board also thinks that it is unclear if MNC will ultimately come through with the financing necessary to execute their proposed transaction.