Bally’s forms special committee to assess $2bn takeover bid
Bally’s Corporation is examining a takeover bid submitted last month by hedge fund Standard General.
US.- In an announcement to the New York Stock Exchange, Bally’s Corporation said a special committee of independent and disinterested directors has been authorised to evaluate New York investment firm Standard General’s offer to acquire the company.
Standard General’s bid, which was submitted on January 25, offers to acquire all of the outstanding shares of Bally’s for $38.00 in cash per share. This would price Bally’s as a whole at $2.07bn.
Bally’s said in a statement: “There can be no assurance that any definitive offer will be made or accepted, that any agreement will be executed or that any transaction will be consummated.”
Soohyung Kim, managing partner of Standard General, is chairman of Bally’s board. Kim said: “Our proposed transaction would allow the company’s stockholders to immediately realise an attractive value, in cash, for their investment and provides stockholders certainty of value for their shares, especially when viewed against the operational risks inherent in the company’s business and the market risks inherent in remaining a public company.”
Kim submitted his firm’s buyout offer to the board January 25, noting that it represented a 30 percent premium to the stock’s closing price the day before.
Bally’s owns and manages 14 casinos across ten states, which could increase to 16 in 11 jurisdictions soon, with its casino operations including more than 15,800 slot machines, 500 table games, and 5,300 hotel rooms.
See also: Tropicana Las Vegas faces changes under Bally’s management
