Bally’s has announced the preliminary results of its modified “Dutch auction” tender, which saw 4,858,465 common shares validity tendered at or below $22 (£18.23/€21.48) per share, at an aggregate purchase price of $106.8m.
The shares represent 9.2% of Bally’s total outstanding common shares, with the tender concluding at midnight on 22 July, having begun on 24 June. It originally planned to buy up almost a fifth (18.8%) of its common shares.
The preliminary count was taken by the depository for the tender offer, the American Stock Transfer & Trust Company. Out of the total shares, 2,143,640 were tendered through notice of guaranteed delivery.
When the auction first opened Bally’s said it was willing to spend up to $190m, which was estimated to represent 18.8% of its issued and outstanding shared at the time. The operator also said it would not be willing to pay more than $22 per share.
In its announcement today, Bally’s said that the amount of shares purchased is subject to change.
“The final number of shares to be purchased in the tender offer will be announced following the expiration of the guaranteed delivery period and the completion by the depositary of the confirmation process,” Bally’s explained.
“Payment for the shares accepted for purchase pursuant to the tender offer, and the return of all other shares tendered and not purchased, will occur promptly thereafter.”
Before the tender process began, Bally’s rejected a $2.07bn takeover offer from investment firm Standard General.
If the offer had been accepted, Standard General – for which Bally’s chair Soo Kim serves as managing partner and chief investment officer, and which holds a stake of more than 20% in the business – would have bought all outstanding shares in the business.