(Reuters) – Vista Outdoor (NYSE:) said on Monday it rejected an offer from investment firm MNC Capital to buy the company and that a private equity firm had offered to buy its sporting goods division for more than $2 billion.
MNC Capital raised its offer for the sports and outdoor products maker to $39.50 per share, or more than $3 billion, last week after its previous offer of $37.50 per share was rejected by Vista, saying it was undervaluing company and its sports equipment business, Revelyst.
Vista shares rose 2.7% to $36.75 in premarket trading.
Vista, which has a market capitalization of $2.09 billion, announced plans to split its outdoor and sports products divisions into two separate companies in 2022.
Since October last year, the company has also announced several acquisition deals for itself and its sporting goods division, Kinetic Group.
In May, Vista agreed to sell Kinetic Group, including its arms and ammunition business, to the privately held Czechoslovak Group (CSG) for $1.96 billion.
Prague-headquartered CSG is seeking to expand its portfolio amid growing demand for military equipment and ammunition since Russia’s invasion of Ukraine.
Vista said on Monday that MNC’s latest offer would not benefit shareholders financially and that it continued to recommend CSG’s acquisition of Kinetic Group.
The company also said that the party interested in acquiring Kinetic Group is ready to sign definitive agreements by June 14 and that its offer “can reasonably be expected to result in a superior offer.”
In November, the company rejected an offer of $30 a share from Czech gunmaker Colt CZ Group.