Vista Outdoor (VSTO.N), opens new tab on Monday rejected investment firm MNC Capital’s final buyout offer of $3.2 billion, citing that it undervalued the company, and said it had agreed to an increased bid for its ammunition unit from Czechoslovak Group (CSG).

The latest development adds to the months-long saga for the parent of Federal Ammunition and Remington Ammunition against the backdrop of rising demand for military supplies since the escalation of the Russia-Ukraine conflict in 2022.

MNC Capital, whose previous bids were all rejected by Vista in favor of its plan to separate its businesses, had increased its offer to $42 per share from $39.50 late last month.
But Vista said MNC Capital’s offer would not be more favorable to its shareholders than a deal with CSG for its ammunition unit, Kinetic Group.

On closing of the CSG deal, Vista stockholders would receive one share of Revelyst common stock and $21.00 in cash, up from $18 offered in June.
Vista now expects the deal with CSG to close this month, subject to approval from stockholders at a special meeting scheduled to be held virtually on July 23.

Kinetic Group’s sale to CSG has received regulatory approval from an interagency committee of the U.S. government.