Bally’s Eyes Potential $15 per Share Takeover amid Rising Stock Prices


A special committee of independent directors associated with Bally’s, represented on the New York Stock Exchange as BALY, is reportedly holding meetings with the hedge fund Standard General. Standard General is the principal shareholder in the casino operator that stretches across regional locations.

Shares in Bally’s experienced a notable surge on Tuesday subsequent to a report by CTFN. This report disclosed that the committee, brought into existence by Bally’s on March 12, had entered discussions with Standard General concerning its bid to takeover at $15 per share proposed on March 11. One key figure in these dealings is Bally’s director, Soo Kim – founder of the money managing firm that holds approximately 23% of Bally’s gaming company shares. It’s noted that Kim is not included as a member of the special committee.

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According to an insider source, whose identity has not been disclosed, CTFN announced that the possibility of Bally’s making a forthcoming announcement about the takeover bid is high. Yet the particulars of what will be said and the timeframe for this potential announcement remain uncertain. The media organization had previously released reports that the Providence-based gaming company was showing increased interest in this offer compared to Standard General’s $38 per share acquisition pitch, offered in March 2022.

Spirit of diligence, the committee made a public statement to investors on March 28, asserting that it had employed Macquarie Capital as its financial advisor. Potter Anderson & Corroon LLP and Sullivan & Cromwell LLP were also announced as legal counsel.

The collective body of directors examining the takeover bid issued a warning on March 28 that no such decision had been arrived to at that point – in other words, there were still no guarantee that a transaction would indeed occur.

Associates of Bally’s and potential traders dealing with the company’s securities received precautionary advice from the Special Committee. It warned that no decisions had been finalized regarding the proposal. The committee affirmed that there were no guarantees for any definitive offer to be made or accepted, that any agreement would be executed, or that any transaction would ever be consummated.

While some experts hold firm in their belief that Bally should unquestionably accept the acquisition proposal, an investor recently expressed an opposing viewpoint. The investor criticized Standard General’s latest bid as opportunistic, arguing that they did not have the shareholders’ best interests at heart.

A recent correspondence to Bally’s board from K&F Growth Capital – owners of 1% of Bally’s shares – urged directors to reject the buyout offer. K&F also urged the reconsideration of costly projects in Las Vegas and New York, and the search for a partner for Bally’s $1.1 billion casino hotel in Chicago. The capital growth firm implied that the gaming company should contemplate asset sales to reduce leverage.

In recent times, Bally’s has been beset with a volley of credit downgrades, sinking deeper into junk status. Concurrently, the company is in pursuit of $800 million to conclude its permanent Chicago-based casino resort, placing Bally’s in a vulnerable position – one that Standard General could conceivably exploit.

However, Standard General has pledged to complete the Chicago project should it succeed in acquiring the gaming firm. As for plans following the acquisition, these currently remain undisclosed.

Rumors suggest that if Standard General does take over Bally’s, it might sell some of the operator’s real estate. This is seen as a strategy for improving the balance sheet and potentially paving the way for another initial public offering (IPO) a few years into the future.