26.1.2024 14:23, VSTO, BAACZGCE, BDHCZEGR
US Senator James Vance demands that the US Treasury Secretary examine the sale of Sporting Products by Vista Outdoor to the Czech Czechoslovak Group. According to the senator, the transaction is a security risk for the United States.
In a letter, Senator James David Vance, who chairs the Committee on Foreign Investments, asked Treasury Secretary Janet Yellen to investigate the sale of Sporting products by the Vista Outdoor Czechoslovak Group (CSG). According to the senator, the transaction is a security risk for the US. According to the senator, the reason is CSG’s alleged close ties with Vladimir Putin’s entourage and the violation of the embargo on arms sales to Azerbaijan.
CSG, according to novinky.cz, stated in its general statement: “We are a private company with an obligation to sell our products to NATO and allied countries in the EU. Some companies owned by CSG have a security clearance from the Czech Republic and NATO. We work with many of the world’s leading defense companies including Raytheon and General Dynamics European Land Systems. Our acquisition (of an Italian ammunition manufacturer also operating in the USA) Fiochci successfully passed a formal review by the US government. None of this would be possible for a company with ties to Russia.”
Senator letter he posted on his website with the option to read more in the Breitbart newspaper, which is considered extremist.
In October of the previous year, CSG announced the purchase of the Sporting Products division of Vista Outdoor. The value of the transaction should be USD 1.91 billion. However, the transaction is preceded by the approval of the shareholders and the relevant regulatory authorities.
A few days later, another Czech arms group, Colt CZ Group, announced the purchase of a stake in Vista and in November offered it a merger, which the American company rejected, saying that it preferred to sell the ammunition division to CSG.
Shares of Vista Outdoor (VSTO) recorded a close of $28.59 yesterday.
CSG 8.00/28 bonds with the ticker BDHCZEGR were last traded at 106% of the nominal value on the Prague Stock Exchange.
Shares of Colt (BAACZGCE) today on the Prague Stock Exchange recorded a decrease of 2.38% to 574.0 CZK. Shares are also traded on the RM-SYSTEM, where today they are depreciating by 1.69% to CZK 580.0.
Source: novinky.cz, JD Vance website
Jakub Němec, Fio banka, as