Standard General reveals Bally’s takeover offer

Key Bally’s Corporation shareholder Standard General has submitted an offer to acquire the remainder of the company.

The US hedge fund, 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.

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.”

The letter 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 proposal.