Bally’s Corporation has entered into a definitive merger agreement with Standard General L.P.
Standard General has made several attempts to acquire the company in the past, with the first bid in 2022 at $38 per share, then again earlier this year at $15 per share.
This lower offer was criticised by Bally’s investor K&F Growth Capital, which accused Soo Kim and Standard General of trying to “acquire Bally’s at a fraction of its fair value, using as a source of funds Bally’s own already overstretched balance sheet.”
The agreed-upon offer will be at $18.25, a 71% premium on the volume-weighted average price per share as of March 8, 2024, the last trading day before the initial cash acquisition proposal of $15.00 per share.
Bally’s will combine with The Queen Casino & Entertainment (QC&E), a regional casino operator majority-owned by Standard General.
Robeson Reeves, Bally’s CEO, said: “The addition of four complementary properties through this merger to our existing 15 domestic casino properties will add further geographic and market diversity to our portfolio.
“With QC&E’s development pipeline recently completed or already well underway, we see a path toward additional revenue and EBITDAR growth and value accretion as those projects are completed in 2025.
“We look forward to bringing our ultimate vision to bear and to working closely with the Standard General team to execute on that vision.”
The transaction values Bally’s at approximately $4.6bn in enterprise value.
Also, under the Securities Act of 1934, the combined company will remain a publicly traded registrant, meaning that Bally’s stockholders may retain their stock in a rollover election to the combined company.
Soo Kim, Managing Partner of Standard General, said: “The transaction provides Bally’s 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.
“The addition of the complementary QC&E assets builds upon the Company’s attractive growth profile.
“We look forward to working with the Board of Directors and the Company’s senior management team as they continue to execute on their business plan.”
Only two weeks ago, Bally's secured $2.07bn in funding for its Chicago Casino and Hotel Tower.
