(Reuters) -Investment firm MNC Capital has raised its offer to acquire sporting and outdoor goods company Vista Outdoor (NYSE:VSTO) to $39.50 per share, or over $3 billion, the investment firm said on Thursday.
Shares of Vista Outdoor rose 7.4% to $36.99 in premarket trading.
Vista Outdoor had rejected MNC Capital's proposal last week, despite engaging with the investment firm to increase its bid of $37.50 per share, saying it undervalued the company and its performance gear business, Revelyst.
The outdoor recreation products maker had said at the time there was significantly more value if Revelyst were to be a standalone company.
MNC Capital said on Thursday its latest offer values Revelyst at over $1 billion, compared with Vista's $570 million it disclosed in an investor presentation on Feb. 1.
Vista did not immediately respond to a Reuters request for comment.
The outdoor goods company has a market capitalization of $2.01 billion, according to LSEG data. MNC's revised offer represents a 27% premium to when it first proposed to buy Vista on March 1 for $2.90 billion, or $35 per share.
Vista had announced in 2022 it would separate its outdoor and sporting products segments into two separate entities. But it has yet to fully complete the separation of its outdoor products segment, which includes helmets and water bottles.
Last month, the company had agreed to sell its sporting products business to Czechoslovak Group for $1.96 billion
Vista had also rejected a $30-a-share cash-and-stock merger offer from Czech gunmaker Colt CZ Group in November, saying it undervalued the company.