Bally’s Corporation’s Board of Directors has announced the formation of a special committee of independent and disinterested directors to evaluate a proposal from Standard General.
Yesterday, it was revealed that Standard General, the American hedge fund, had submitted a proposal to acquire the outstanding shares of common stock in Bally’s for a price of $15.00 per share.
The purpose of this special committee is to evaluate this proposal, with Bally’s saying, “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.”
In an email from Bally’s Chairman and Founding Partner of Standard General, Soo Kim, it was stated that even if the special committee were not to recommend the proposal or the public stockholders do not approve the transaction, Standard General will likely remain a long-term stockholder of the company.
The aforementioned email also stated that the offer is a “significant premium of 41%” to Bally’s closing share price on Friday.
Standard General is Bally’s largest stockholder, with an equity interest that represents around 23% of the outstanding shares, and made a similar proposal in January 2022 to acquire all outstanding shares of Bally’s, with the offer at the time a lot higher than this current one, at a price of $38.00 per share.
Since the market close on Friday, Bally’s share price has risen 34.3% to $14.26 (15:39 GMT).
