Gates Capital Management Advocates for All-Cash Sale of Vista
Gates Capital Management's Position on Vista Outdoor Proposal
Remains Committed to Supporting the Best Outcome for All Vista Shareholders
Encourages Vista to Negotiate an All-Cash Transaction for the Entire Company Given Fully-Taxable Nature of Current Proposal and Execution Risks Associated with Projections
Gates Capital Management, Inc. is an event-driven alternative asset manager that beneficially owns 5,589,041 shares of common stock, or approximately 9.6%, of Vista Outdoor, Inc. (NYSE: VSTO). Recently, Gates Capital issued a statement urging Vista to negotiate an all-cash offer for the Company, while also announcing intentions to vote against selling its assets to the Czechoslovak Group a.s. (CSG).
Full Statement from Gates Capital Management
Gates Capital Management asserts that the current proposal does not serve the best interests of Vista shareholders. The independent proxy advisory firm Institutional Shareholder Services (ISS) recently recommended that shareholders oppose the CSG proposal. Gates Capital agrees, believing that the optimal outcome would involve selling both The Kinetic Group and Revelyst in an all-cash deal.
Disclosures suggest that a private equity firm has expressed interest in buying Revelyst for $1.1 billion in cash, but this would require swift action. There is a significant risk in proceeding with the sale of only The Kinetic Group without ensuring the sale of Revelyst, which the firm would not consider after the CSG transaction closes.
Gates Capital emphasizes that the current proposal delivers the least cash to Vista shareholders and involves substantial execution risks tied to a standalone Revelyst. Therefore, the organization encourages Vista to seek an all-cash transaction that benefits all stakeholders involved.
About Gates Capital Management
Gates Capital Management is based on decades of experience in managing assets for institutional and private clients globally. Founded in 1996, the firm has grown to manage over $2 billion in assets. For additional information, interested parties can visit www.gatescap.com.
Frequently Asked Questions
What does Gates Capital Management recommend regarding Vista?
Gates Capital Management recommends that Vista finalize an all-cash offer for the entire company, opposing the current proposal involving only The Kinetic Group.
Why is the proposal to CSG seen as unfavorable?
The proposal is considered unfavorable because it limits cash distribution to shareholders and increases execution risks associated with a standalone Revelyst.
What is the significance of ISS's recommendation?
ISS's recommendation to vote against the proposal supports Gates Capital's position, highlighting concerns about shareholder value.
What potential offer exists for Revelyst?
A private equity firm has expressed interest in acquiring Revelyst for $1.1 billion in cash, contingent upon timing before the closure of the current proposal.
What is the expertise of Gates Capital Management?
Gates Capital Management specializes in event-driven investments and has substantial experience managing significant assets for various clients.
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