The preliminary proposal from Standard General includes an offer to acquire all outstanding shares in Bally’s for $38 in cash per share.

At this value, Standard’s bid places a more than $2bn price tag on the casino company, though Bally’s said: “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 consummated.”

Given this, Bally’s Board of Directors formed the special committee, comprised of “independent and disinterested directors” who will evaluate Standard’s proposal, as well as “any potential strategic alternatives.”

The hedge fund is already its largest stockholder, with an equity interest representing more than 20% of the company’s outstanding shares, while Bally’s current Chairman Soohyung Kim is the Managing Partner and Chief Investment Officer of Standard General.

“As a result of our long-term involvement with the company and its predecessor, we have a detailed understanding of Bally’s, its business and assets, which will enable us to move quickly to finalise a transaction,” noted Kim in a public filing.

“We intend to fund the transaction through sale and lease back and other long-term financing arrangements.”

Standard General will not move forward with the transaction unless it is approved by the special committee.

Kim added: “In considering this proposal, you should know that if the special committee does not recommend or the public stockholders of the company do not approve the proposed transaction, such determination would not adversely affect our future relationship with the company, and we would intend to remain as a long-term stockholder.”