Standard General, a New York-based hedge fund focused on opportunistic investing in levered US mid-market companies, has made a non-binding offer to acquire the remaining shares it does not already own in gaming and betting company Bally’s Corporation.
According to a company statement, Bally’s has formed a special committee of “independent and disinterested directors that is authorised, among other things, to evaluate the preliminary, non-binding proposal” to acquire the outstanding shares for $15.00 in cash per share. The committee has also been mandated t0 consider any “potential strategic alternatives to the proposal”.
Standard General’s offer equates to a 41% premium to Bally’s closing share price on 8 March. If completed, the deal would see the casino company operating as a private business.
Bally’s stock jumped by nearly 30% when news of the takeover bid broke on Tuesday, having previously been trading at near-historic lows.
In a letter to Bally’s board on Monday, Standard General said that the transaction would let Bally’s stockholders “immediately realise a premium price, in cash, for their investment” and provide certainty amid “operational risks inherent in the company’s business” and “market risks inherent in remaining a publicly-listed company”.
Bally’s, which operates 16 casinos across 10 states as well as US and UK online gaming divisions, made a $122m loss in 2023.
