In its third attempt, hedge fund Standard General has succeeded in its quest to buyout the remaining shares in Bally’s Corp. The deal, announced Thursday, is for $18.25 a share, which represents a 71 percent premium over the 30-day volume weighted average price per share as of March 8, the last day before the most recent offer became public.
As part of the deal, Bally’s will merge with Queen Casino & Entertainment (QC&E), another operator owned by Standard General. The new company will remain publicly traded and will feature a combined portfolio of 19 casinos across 11 states.
Standard General is led by Soo Kim, who also serves as chairman of Bally’s. The hedge fund offered $38 per share for the company in January 2022 but was rejected. It tried again in March for $15 per share, which led Bally’s to create a special committee to consider the offer. Ultimately, the committee decided now was the time to jump at the slightly increases bid.
“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,” Kim said in a statement. “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.”
