SBC News Voice of the Sports Betting Industry
The board of Bally’s Corporation has notified investors that it has reached definitive terms for the NYSE gambling group to be acquired by Standard General LP.
As announced, Bally’s board has endorsed an $18.25 cash per share offer proposed by Standard General LP, the New York private equity fund and Bally’s biggest investor, maintaining circa 26% of the firm’s NYSE shareholding.
“The price represents a 71% premium over the Company’s 30-day volume-weighted average price per share as of March 8, 2024, the last trading day before the public disclosure of Standard General’s initial cash acquisition proposal of $15.00 per share.”
Dealmakers informed that the transaction values Bally’s at approximately $4.6 billion in enterprise value, in which Bally’s will remain publicly traded on the NYSE.
As detailed, Bally’s will be with Queen Casino & Entertainment Inc (QC&E), a regional casino operator owned by funds managed by Standard General.
QC&E owns and operates four casinos across three states and is currently working on major redevelopment projects at two of its properties, expected to be completed in 2025.
The merger will expand Bally’s Casino & Resorts segment to 19 facilities across 11 states and enhance its development pipeline with several new projects. The combination aims to boost Bally’s US profile and growth in the gaming and entertainment industry.
Soo Kim, Managing Partner of Standard General, said, “The transaction provides Bally’s stockholders with a significant cash premium along with certainty of value for their investment or, if they elect to retain their shares, the opportunity to participate in the longer-term growth prospects of our expanded portfolio and significant development pipeline.
The addition of the complementary QC&E assets builds upon the Company’s attractive growth profile. We look forward to working with the Board of Directors and the Company’s senior management team as they continue to execute on their business plan.”
Standard General has previously made multiple attempts to acquire the company, starting with an initial bid of $38 per share in 2022, followed by another offer earlier this year at $15 per share.
The PE fund has increased its shareholding in Bally’s since 2021, when the US casino group finalized its $2.5 billion acquisition of Gamesys Group, to develop its US and European online gambling offering.
Robeson Reeves, Bally’s CEO, said: “The addition of four complementary properties through this merger to our existing 15 domestic casino properties will add further geographic and market diversity to our portfolio.
“With QC&E’s development pipeline recently completed or already well underway, we see a path toward additional revenue and EBITDAR growth and value accretion as those projects are completed in 2025.
“We look forward to bringing our ultimate vision to bear and to working closely with the Standard General team to execute on that vision.”
