Bally’s Corporation has formed an independent special committee to assess the $2bn (£1.48bn/€1.77bn) takeover bid submitted last month by hedge fund Standard General.
In an announcement to the New York Stock Exchange, Bally’s said the special committee of independent and disinterested directors is authorized to evaluate the preliminary, non-binding proposal from the New York-based investment firm as well as any potential strategic alternatives to the proposal.
Standard General’s bid, which was submitted on 25 January, offers to acquire all of the outstanding shares of Bally’s that it does not already own for $38.00 in cash per share. This would price Bally’s as a whole at $2.07bn.
In the statement concerning the formation of the committee, 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.”
The $38.00 price represented a 30% premium compared to Bally’s closing share price of $29.27 the day prior to the bid. Bally’s share price increased to $35.85 on 25 January and closed at $35.63 on 3 February.
Speaking last month, Standard General chairman Soo Kim said: “Our proposed transaction would allow the company’s stockholders to immediately realise an attractive value, in cash, for their investment and provides stockholders certainty of value for their shares, especially when viewed against the operational risks inherent in the company’s business and the market risks inherent in remaining a public company.”
Bally’s has undergone a number of transformational changes in recent years.
Previously known as Twin River, it rebranded after acquiring the Bally’s brand name from Caesars. Following this, it began an acquisition spree, as it acquired betting supplier Bet.Works, fantasy operator Monkey Knife Fight and UK-based online gaming operator Gamesys.
With the Gamesys deal, agreed in March, Bally’s paid £18.50 per Gamesys share, valuing the business at £2bn ($2.70bn/€2.40bn).