Bally’s special committee to evaluate Standard General offer

Bally’s Corporation on Tuesday swiftly appointed a special committee to assess a takeover offer by key shareholder Standard General.

US hedge fund Standard General, which owns a 25 per cent share in the casino and gaming giant, has offered US$15 per share, a premium of 41 per cent on the company’s closing share price last Friday, to acquire the remaining common stock of Bally’s.

In a letter to Bally’s published in a US Securities and Exchange Commission filing, Standard General said: “It is our expectation that the board of directors will appoint a special committee of independent directors to consider our proposal and make a recommendation to the board of directors.

“We will not move forward with the transaction unless it is approved by such a special committee.”

And on Tuesday, Bally’s promptly responded by appointing the special committee to evaluate the offer.

A Bally’s statement read: “The board of directors of Bally’s Corporation today announced that it has formed a special committee of independent and disinterested directors that is authorized, among other things, to evaluate the preliminary, non-binding proposal, dated March 11, 2024, by Standard General to acquire all of the outstanding shares of Bally’s that it does not already own for $15.00 in cash per share, as well as any potential strategic alternatives to the proposal.

“A copy of the proposal letter from Standard General is available as an exhibit to Standard General’s statement of beneficial ownership on Schedule 13D/A as publicly filed with the Securities and Exchange Commission.

“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 letter from Standard General added: “As a result of our long-term involvement with the company and its predecessor, we have a detailed understanding of the company, its business and assets, which will enable us to move quickly to negotiate and execute mutually acceptable definitive transaction documentation.

“Based upon our experience and familiarity with the company and extensive discussions we have had with potential financing sources, we do not anticipate any issues in securing financing for the transaction.

“In any event, the closing of a transaction would not be subject to any financing condition, and we would obtain a financing commitment prior to the execution of definitive merger agreement.”

Shares in Bally’s rose after the announcement of the initial proposal.