The special committee formed by Bally’s Corporation to evaluate an acquisition proposal from New York-based hedge fund Standard General brought in reinforcements Tuesday.
The committee, comprised of “independent and disinterested” directors of Bally’s Corporation, announced it has retained Macquarie Capital (USA) as its financial advisor and Potter Anderson & Corroon LLP as its legal counsel.
As reported earlier this month by Gaming America, Standard General made a preliminary, non-binding acquisition proposal dated January 25.
The proposal, which was unveiled publicly on February 3, includes an offer to acquire all outstanding shares in Bally’s for $38 per share, in cash.
The committee on Tuesday said the new advisors will assist with its evaluation of the proposal, as well as any potential strategic alternatives to the proposal.
“The special committee cautions Bally’s stockholders and others considering trading the company’s securities that no decisions have been made with respect to the proposal,” the committee said in a statement.
The committee added: “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 company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.”
The Standard bid equates to a valuation of Bally’s as more than $2bn. The hedge fund already is the largest stockholder of Bally’s, with an equity interest representing more than 20% of the company’s outstanding shares.
Soohyung Kim, Bally’s current Chairman, is the Managing Partner and Chief Investment Officer of Standard General.
Kim said in a public filing Standard General intends to fund any potential transaction through sale and lease back and other long-term financing arrangements. Standard General will not move forward with the transaction unless it is approved by the special committee, Kim added.