Bally’s Forms Special Committee to Evaluate Proposed Acquisition of Standard General
Bally Company has formed a special committee that will evaluate a preliminary, non-binding acquisition proposal by General Standard.
The New York-based investment firm, whose founding partner is the current chairman of Bally Soo Hyung Kim, the offer includes the purchase of the remaining outstanding Bally shares that it does not already own for a price of $38 each, totaling $2.07 billion and representing a 30% premium to the closing price at January 24, 2022.
Made up of “independent and disinterested directors”, the casino operator indicates that its special committee will evaluate the proposal and possible strategic alternatives.
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 completed.”
Kim noted in a public filing detailing the motion: “Through our long-term involvement with the company and its predecessor, we have a detailed understanding of Bally’s, its business and its assets, which will allow us to act quickly. to finalize a transaction.
“We intend to finance the transaction through sale-leaseback and other long-term financing arrangements.”
As Bally’s largest shareholder with a stake representing more than 20% of the outstanding shares, Standard General would sell current real estate for a cash injection before agreeing sale-leaseback agreements with buyers.
“In considering this proposal, you should be aware that if the Special Committee does not recommend or the Company’s public shareholders do not approve of the proposed transaction, such a decision will not affect our future relationship with the Company. , and we intend to remain as a long-term shareholder,” added Kim.
“Please note that this proposal is only an expression of interest and we reserve the right to withdraw or modify our proposal in any way.
“No legal obligation with respect to a transaction shall arise unless and until the execution of mutually acceptable definitive documentation.
“Once the final documentation is signed, completion of the transaction would also be subject to the receipt of required regulatory approvals, including approvals under applicable gaming regulations and antitrust laws and other customary conditions. We do not expect no problem obtaining the required regulatory approvals.”
Bally’s owns and operates 14 casinos in 10 states, which could soon grow to 16 in 11 jurisdictions, with its casino operations comprising more than 15,800 slot machines, 500 table games and 5,300 hotel rooms
The operator itself has made a few acquisitions over the past year, acquiring Degree 53, Gamesys Group and Bet.Works.