{"id":369,"date":"2024-07-25T19:01:16","date_gmt":"2024-07-25T19:01:16","guid":{"rendered":"http:\/\/buckinghamshire-removals.co.uk\/?p=369"},"modified":"2024-08-28T10:57:48","modified_gmt":"2024-08-28T10:57:48","slug":"ballys-soars-after-accepting-increased-takeover-bid-from-standard-general","status":"publish","type":"post","link":"http:\/\/buckinghamshire-removals.co.uk\/index.php\/2024\/07\/25\/ballys-soars-after-accepting-increased-takeover-bid-from-standard-general\/","title":{"rendered":"Bally\u2019s Soars After Accepting Increased Takeover Bid From Standard General"},"content":{"rendered":"

Shares of Bally\u2019s (NYSE: BALY) are higher by more than 25% in late trading after the regional casino operator accepted an increased takeover offer from hedge fund Standard General.<\/p>\n

\"Bally's\"
Standard General founder Soo Kim. Bally’s accepted a revised $18.25 per share takeover offer from the money manager. (Image: Meet AC\/Casino.org<\/em>)<\/figcaption><\/figure>\n

The acquisition bid values the gaming company at $18.25 per share, a more than 20% increase to the suitor\u2019s original offer of $15 a share<\/a> floated in March. Standard General\u2019s new offer represents a 71% premium to Bally\u2019s 30-day volume-weighted average price \u201cprior to the initial Standard General proposal.\u201d The proposed deal assigns an enterprise value of $4.6 billion to Bally\u2019s.<\/p>\n

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After a detailed consideration by the Special Committee, with the assistance of our outside financial and legal advisors, it was determined that the Cash Consideration from Standard General delivers a meaningful and immediate value to stockholders,\u201d said Jaymin Patel, chairman of the special committee<\/a> tasked with evaluating the offer, in a statement.<\/p>\n<\/blockquote>\n

Bally\u2019s investors have the option to accept the $18.50 per share offer or retain their equity and remain investors in the soon-to-be privately held company. Standard General has already invested $500 million of the takeover cost.<\/p>\n

Standard General Raised Offer for Bally\u2019s, Still Below 2022 Bid<\/h2>\n

While Standard General — the hedge fund that\u2019s Bally\u2019s largest shareholder — increased its offer for Bally\u2019s, it\u2019s still far below the $38 per share acquisition overture<\/a> made in March 2022.<\/p>\n

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On that basis, acceptance of the proposal may have caught some analysts and investors by surprise, though some noted that following Bally\u2019s procuring funding for its permanent Chicago casino hotel, the acquisition offer was more likely to be accepted<\/a>. The gaming company formally accepting the bid arrived about two weeks after it announced a series of transactions worth in excess of $2 billion that paved the way to move forward in Chicago.<\/p>\n<\/div>\n

\u201cThe transaction provides Bally\u2019s stockholders with a significant cash premium along with certainty of value for their investment or, if they elect to retain their shares, the opportunity to participate in the longer-term growth prospects of our expanded portfolio and significant development pipeline,\u201d said Bally\u2019s Chairman and Standard General founder Soo Kim in the press release.<\/p>\n

Related to the deal, Sinclair Broadcast Group (NASDAQ: SBGI), which became a Bally\u2019s shareholder in late 2020 when the gaming company agreed to reportedly pay $85 million over 10 years<\/a> to put its name on the media group\u2019s regional sports networks, said it will support the takeover. That means \u201cat least 47% of Bally\u2019s outstanding fully-diluted equity interests will be rolled over into the combined company.\u201d<\/p>\n

How Bally\u2019s Could Look Post-Acquisition<\/h2>\n

Under Standard General ownership, Rhode Island-based Bally\u2019s will join Queen Casino & Entertainment Inc. as the hedge fund\u2019s casino holding. Queen Casino owns four casinos — DraftKings at Casino Queen in East St. Louis, Il., the Queen Marquette in Marquette, Iowa, and the Queen Baton Rouge and the Belle of Baton Rouge in Baton Rouge, both located in the Louisiana capitol.<\/p>\n

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Combined, Bally\u2019s and Queen Casino will run 19 gaming venues across 11 states. Kim previously said Bally\u2019s would move forward with the Chicago integrated resort if the takeover offer was accepted. There has been some chatter that the hedge fund could sell Bally\u2019s assets, including real estate, to raise cash, but that hasn\u2019t been confirmed.\u00a0 Some analysts noted investors could be frustrated by Bally\u2019s decision to accept the offer because the stock has struggled since the operator rejected the hedge fund\u2019s more lucrative 2022 bid.<\/p>\n<\/div>\n

\u201cBottom-line, we view the deal as likely frustrating for shareholders shortly following SG’s $38\/share offer, but ultimately see BALY as better suited for what is essentially private ownership given high leverage & Standard General’s close involvement in capital allocation and long-term strategy,\u201d noted Stifel analyst Jeffrey Stantial.<\/p>\n

The post Bally\u2019s Soars After Accepting Increased Takeover Bid From Standard General<\/a> appeared first on Casino.org<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Shares of Bally\u2019s (NYSE: BALY) are higher by more than 25% in late trading after the regional casino operator accepted an increased takeover offer from hedge fund Standard General. Standard General founder Soo Kim. Bally’s accepted a revised $18.25 per share takeover offer from the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[10],"tags":[],"_links":{"self":[{"href":"http:\/\/buckinghamshire-removals.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/369"}],"collection":[{"href":"http:\/\/buckinghamshire-removals.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/buckinghamshire-removals.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/buckinghamshire-removals.co.uk\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/buckinghamshire-removals.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=369"}],"version-history":[{"count":1,"href":"http:\/\/buckinghamshire-removals.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/369\/revisions"}],"predecessor-version":[{"id":370,"href":"http:\/\/buckinghamshire-removals.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/369\/revisions\/370"}],"wp:attachment":[{"href":"http:\/\/buckinghamshire-removals.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=369"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/buckinghamshire-removals.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=369"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/buckinghamshire-removals.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=369"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}