NEW YORK, July 19, 2024 /PRNewswire/ -- Gates Capital Management, Inc. ("Gates Capital Management" or "we"), an event-driven alternative asset manager that beneficially owns 5,589,041 shares, or approximately 9.6%, of Vista Outdoor, Inc. ("Vista" or the "Company") (NYSE: VSTO), today reiterated its opposition to the pending sale of The Kinetic Group to Czechoslovak Group a.s. ("CSG") in a letter sent to the Vista Board of Directors.
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 9.6%, of the outstanding common stock of the Company. We are writing to the Board to express our continued opposition to the proposed sale of The Kinetic Group to CSG.
We cannot understand how any shareholder would vote for a transaction that we believe is certain to have less value than either the $42 all-cash offer from MNC Capital ("MNC") or the long-term value that could be created through a tax-free spin-off.
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 $2 billion in assets under management. Further information is available at www.gatescap.com.
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
View original content to download multimedia:https://www.prnewswire.com/news-releases/gates-capital-management-expresses-continued-opposition-to-vista-outdoors-proposed-sale-of-the-kinetic-group-to-csg-302201940.html
SOURCE Gates Capital Management
