GATES CAPITAL MANAGEMENT OPPOSES VISTA OUTDOOR'S PROPOSED SALE OF THE KINETIC GROUP TO CSG
GATES CAPITAL MANAGEMENT OPPOSES VISTA OUTDOOR'S PROPOSED SALE OF THE KINETIC GROUP TO CSG
Sends Letter to Vista Board of Directors Outlining Why Tax-Free Spin-Off or Cash Offer for the Entire Company Are Superior to the Proposed Sale of The Kinetic Group
致董事會的信:說明爲什麼免稅分拆或整個公司的現金報價優於Kinetic Group的擬議銷售
NEW YORK, July 17, 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 sent a letter to the Vista Board of Directors (the "Board") regarding its intention to vote AGAINST the pending sale of The Kinetic Group to Czechoslovak Group a.s. ("CSG").
Gates資產管理公司(“Gates Capital Management”或“我們”),一家活動驅動的另類資產管理公司,有益地擁有VistaOutdoor,Inc.(“Vista”或“公司”)(紐約證券交易所:VSTO)約9.6%或5589041股的股權,今天致信Vista董事會(“董事會”),反對將The Kinetic Group出售給CzechoslovakGroup a.s.(“CSG”)的待定交易。
July 17, 2024
2024年7月17日
Vista Outdoor Inc.
Attn: Board of Directors
1 Vista Way
Anoka, Minnesota 55303
VistaOutdoor股份有限公司。
董事會收
1 Vista Way
Anoka, Minnesota 55303
Dear Members of the Board,
尊敬的董事會成員:
Gates Capital Management is one of the largest shareholders of Vista, beneficially owning 5,589,041 shares, or approximately 9.6%, of the Company. We are writing to the Board to express our concerns regarding the pending sale of The Kinetic Group to CSG.
Gates資產管理公司是Vista的最大股東之一,有益地擁有5589041股,約佔公司的9.6%。我們致信董事會,表達我們對The Kinetic Group即將出售給CSG的交易的擔憂。
We strongly oppose the sale at the proposed price of $2.1 billion and believe that Vista shareholders deserve a higher price that accurately reflects The Kinetic Group's financial strength and future potential. The Kinetic Group consistently generates substantial free cash flow, which averaged more than $400 million annually over the four years ended March 2024 (free cash flow is Operating Income plus Depreciation and Amortization, minus $20 million of annual corporate expense and $25 million of annual capital expenditures). We believe the proposed sale price does not fairly value this cash-generative asset. Additionally, the current proposal retires $500 million of inexpensive 4.5% coupon debt well ahead of its 2029 maturity. This early debt retirement transfers more than $1.50 per share of value from Vista shareholders to bondholders, which we find unacceptable. In the event of a higher bid by CSG, we believe Vista's plan to keep $250 million of cash at Revelyst after the sale is not in the best interest of Vista shareholders and the amount should be reduced to $50 million with the additional $200 million being returned to Company shareholders.
我們強烈反對以21億美元的擬議價格出售,並認爲Vista股東應該獲得更高的價格,以準確反映The Kinetic Group的財務實力和未來潛力。The Kinetic Group持續產生大量自由現金流,在截至2024年3月的四年內平均爲每年超過4億美元(自由現金流是營業收入加折舊和攤銷減去每年2000萬美元的企業費用和每年2500萬美元的資本支出)。我們認爲,擬議的銷售價格未能公正地評估這種現金產生的資產。此外,當前的提案提前償還了5000萬美元低成本的4.5%票息債務,遠早於2029年到期。這種早期償債將超過1.50美元的股票價值轉移給了債券持有人,我們認爲這是不可接受的。如果CSG提出更高的報價,則我們認爲Vista計劃在銷售後在Revelyst保留2500萬美元的現金並不符合Vista股東的利益,金額應縮減至5000萬美元,並將額外的2000萬美元返還給公司股東。
Given the inadequacy of the proposed CSG transaction, we were not surprised to see that proxy adviser Institutional Shareholder Services (ISS) recently recommended voting "AGAINST" the transaction.
考慮到CSG提出交易的不足之處,我們並不驚訝地看到,投資者關係顧問公司Institutional Shareholder Services(ISS)最近建議投票反對該交易。
Separately, we believe that the $42 per share bid from MNC Capital ("MNC") to acquire all of Vista provides a reasonable starting point for Vista to negotiate a superior transaction versus the current CSG proposal. Both the CSG transaction and MNC proposal are fully taxable, but only the MNC proposal would deliver the certainty of an all-cash payment at closing.
另外,我們認爲MNC Capital提出的每股42美元的收購報價給Vista提供了一個合理的起點,以與當前的CSG提案談判出更高的交易。CSG的交易和MNC的提議都是完全應稅的,但只有MNC的提議會在收盤時提供全部現金支付的確定性。
Finally, we would support Vista's original plan of a tax-free spin-off, separating The Kinetic Group and Revelyst into two standalone public companies. This plan could include $50 million of cash allocated to Revelyst and a commitment from The Kinetic Group to pay out at least 75% of its free cash flow in dividends and share repurchases annually. We believe this decision would provide an excellent opportunity for both businesses to deliver strong shareholder returns over time.
最後,我們將支持Vista原來的免稅剝離計劃,將The Kinetic Group和Revelyst分開成兩個獨立的上市公司。此計劃可以包括向Revelyst分配5000萬美元的現金和The Kinetic Group承諾每年支付至少75%的自由現金流股息和股票回購。我們相信這個決定將爲兩個企業提供長期的強勁股東回報機會。
We urge the Board to reconsider its currently proposed transaction 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.
我們敦促董事會重新考慮其當前提議的交易,並通過確保The Kinetic Group獲得更高價位、與MNC銷售整個公司進行洽談或恢復Vista的原始剝離計劃,以所有股東的最大利益行事。
Sincerely,
此致敬禮,
Jeff Gates
Managing Partner
Gates Capital Management
Jeff Gates
管理合夥人
Gates資產管理公司
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 .
關於Gates資產管理公司
Gates資產管理公司是一家爲全球機構和私人客戶提供服務的活動驅動另類資產管理公司。Gates Capital成立於1996年,今天管理資產超過20億美元。更多信息請訪問。
Cautionary Statement Regarding Forward-Looking Statements
關於前瞻性聲明的警示聲明
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.
此新聞發佈稿件不構成在任何州向任何人出售或邀請購買本文所述證券的要約。此處信息包含“前瞻性陳述”。特定的前瞻性陳述可通過它們與歷史或當前事實的嚴格關聯性,以及不包括“可能”、“將”、“預計”、“相信”、“預計”、“計劃”、“估計”、“項目”、“潛力”、“目標”、“預測”、“尋求”、“可以”、“應該”或諸如此類詞語的負面條款或這些條款的其他變體或類似術語來確定。同樣,描述我們的目標、計劃或目標的陳述屬於前瞻性陳述。前瞻性陳述會受到各種風險和不確定性以及假設的影響。不能保證此處任何想法或假設是正確的,或者此處所述的任何目標、計劃或目標最終將被執行或實現。如果其中一個或多個這樣的風險或不確定性實現,或者如果Gates資產管理公司(“Gates”)的基礎假設被證明是不正確的,則實際結果可能會與這些聲明所指示的結果有所不同。因此,不應將前瞻性聲明視爲Gates代表未來計劃、估計或預期一定會實現的陳述。
Media Contacts:
ASC Advisors
Taylor Ingraham / Morgan Davis
[email protected] / [email protected]
203-992-1230
媒體聯繫人:
ASC顧問公司
Taylor Ingraham / Morgan Davis
[email protected] / [email protected]
203-992-1230
Investor Contact:
Paul Lucas
Managing Director
[email protected]
212-626-0290
投資者聯繫人:
保羅·盧卡斯
董事總經理
[email protected]
212-626-0290
SOURCE Gates Capital Management
Gates資本管理公司