Shareholder rights firm questions pricing in Bally’s deal
This follows the recent Bally’s announcement that it will be taken over by Standard general.
Julie & Holleman LLP has voiced concerns regarding the recently announced merger between Bally’s and Standard General.
The nationally known shareholder rights firm has kicked off an investigation into the proposed share buyout price.
Bally’s moved forward to taking the company private last week by signing a merger agreement with Standard General L.P. affiliates.
The terms of the deal state that Standard General will acquire Bally’s outstanding shares for $18.25 per share. Bally’s will now be combined with The Queen Casino & Entertainment.
To support the merger, Standard General has obtained $500m of the committed financing.
Bally’s Board of Directors approved both the per share cash merger consideration and the transactions that were unanimously recommended by the company’s special committee.
However, the firm has released a statement outlining its concerns and said that it believes the share price is too low.
The firm stated, “Julie & Holleman, whose attorneys have helped secure hundreds of millions of dollars for shareholders, is concerned about the inadequate deal price. The $18.25 per share deal price is less than the recent Bally’s recent trading prices, and the company may be better suited by pursuing alternative transactions.
“Julie & Holleman is also concerned about conflicts of interest – Standard General is squeezing out public shareholders while retaining for itself the company’s massive potential. Indeed, certain investors have expressed that Standard General is taking advantage of short-term market conditions to buy the company at a steep discount to its intrinsic value.”
In other Bally’s news, the company recently signed a binding term sheet with Gaming and Leisure Properties to secure $2.07bn in funding for its ongoing Bally’s Chicago permanent casino development.
Once completed, Bally’s Chicago will be home to 4,000 gaming positions, as well as to an exhibition hall, 500-room hotel, a 3,000-seat theater and 10 restaurants.
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