Bally’s Board Forms Committee to Mull Standard General Takeover Offer

Bally’s (NYSE:BALY) said it has formed a special commission to pass judgment the recent takeover extend made by hedge monetary fund Standard General, the cassino operator’s largest shareholder.

Standard General is controlled by Soo Kim, a member of Bally’s board. Last week, the investiture unwaveringly filed an acquisition tender valuing the gaming company at $38 a share, or just now over $2 billion. In a Form 13/D filing with the Securities and Exchange Commission (SEC), Standard General says it will not pursue the trade unless it’s sanctioned by a special committee.

There put up follow no sureness that any definitive offer up will follow made or accepted, that any arrangement testament follow executed, or that any dealings will live consummated,” said Bally’s inward a statement announcing the shaping of the committee.

The radical mulling the proposals is comprised of “independent and disinterested directors,” implying Kim isn’t on the committee.

Other Interesting Tidbits inwards Bally’s Takeover Situation

While Bally’s gillyflower rallied in the backwash of the Standard General acquisition proposal, it hasn’t reached the $38 a divvy up offering price.

Some analysts believe the dodge fund’s offer is to a greater extent of a starting point than net bid, and that’s possible the price mark moves higher. It’s also been noted that Gamesys investors may non live thrilled by the current terms of the Standard General offer.

When Bally’s acquired the UK-based online gaming accompany shoemaker's last year, some Gamesys investors opted to take equity inwards the vendee when the buy in was trading northerly of $50. That could live a ratify they won’t inward favour of an acquisition proposal that values Bally’s at a toll that’s significantly at a lower place their stakes.

Lee Fenton is Bally’s chief executive director officer. He previously held that task at Gamesys. Like Standard General’s Kim, Fenton is also a Bally’s director.

The $38 per percentage proffer is also well-below the almost $58 consensus toll butt on the stock, and well-nigh half the 52-week high.

Could Another Offer Emerge?

It remains to live seen if Kim ups the Standard General offer. Likewise, it’s not now all the way if another suitor will emerge for Bally’s.

The plank of directors did, however, say it testament pass judgment “any potential strategic alternatives to the proposal.” With a securities industry capitalization of $1.86 billion, Bally’s is easy digestible for any figure of potential suitors, and if an offering is credible, the table would be compelled to weigh it.

Bally’s operates 14 casinos in 10 states and owns the existent landed estate of most of those venues, potentially making it more attractive to alfresco buyers. The companionship also owns a rich portfolio of digital gaming, sports wagering, and fantasy sports and technology assets that could follow enticing to buyers seeking perpendicular integrating and to bolster their profiles inward the net gaming space.