{"id":313879,"date":"2024-03-12T14:33:36","date_gmt":"2024-03-12T19:33:36","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=313879"},"modified":"2024-03-13T12:10:16","modified_gmt":"2024-03-13T17:10:16","slug":"ballys-forms-committee-to-mull-standard-general-takeover-bid","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/ballys-forms-committee-to-mull-standard-general-takeover-bid\/","title":{"rendered":"Bally\u2019s Forms Committee to Mull Standard General Takeover Bid"},"content":{"rendered":"

Bally\u2019s (NYSE: BALY) announced its board of directors has formed a special committee to evaluate the $15 per share takeover offer floated yesterday by Standard General — the hedge fund that owns about 23% of the casino operator\u2019s shares outstanding.<\/p>\n

\"Bally's\"
Standard General founder Soo Kim. Bally’s formed a special committee to evaluate the hedge fund’s takeover offer. (Image: New York Post<\/em>)<\/figcaption><\/figure>\n

The move was expected after Standard General, which is run by Bally\u2019s board member Soo Kim, offered to acquire the gaming company for a second time. The hedge fund previously offered $38 a share<\/a> for the regional casino operator in January 2022. Rhode Island-based Bally\u2019s cautioned investors that formation of the special committee is not indicative of accepting the takeover proposal.<\/p>\n

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,\u201d<\/strong> according to a statement issued by the company.<\/p><\/blockquote>\n

A committee was formed in 2022 to consider Standard General\u2019s first takeover bid. But that offer was ultimately rejected. Bally\u2019s shares rallied yesterday on news of the offer, which represents a 40% premium to the March 8 closing price, with those gains modestly extending today on news of the committee being formed.<\/p>\n

Bally\u2019s Could Decide Against This Offer, Too<\/h2>\n

It\u2019s logical to wonder why, after rejecting an acquisition offer of $38 share, Bally\u2019s would accept less than half that. Some analysts believe this time is different, while others don\u2019t see competing bids emerging<\/a> for the regional casino outfit.<\/p>\n

\n

Others believe Bally\u2019s holds a strong portfolio of assets that generate earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) well in excess of regional gaming peers. In a note to clients, Macquarie analyst Chad Beynon highlighted the company\u2019s operating rights for Tropicana on the Las Vegas Strip and an upcoming Chicago casino hotel as some of the potential catalysts for Bally\u2019s, while acknowledging the Chicago project is divisive.<\/p>\n<\/div>\n

\u201c\u2026high value creation opportunities including Trop (26 acres available at a value of $400-650m assuming $15-25m per acre),\u201d <\/strong>wrote the analyst. \u201cIn our view, the polarizing issue has been Chicago, in which we estimate the permanent facility will eventually generate ~$250m of EBITDA. For reference, BALY management has discussed EBITDA in excess of the $250m range, which compares to Rivers Casino in Des Plaines, IL at ~$250-300m.\u201d<\/strong><\/p>\n

Standard General\u2019s new acquisition offer for Bally\u2019s emerged just days after the company told Nevada regulators it\u2019s attempting to source $800 million<\/a> in financing to complete the Chicago integrated resort.<\/p>\n

Standard General Selling Points<\/h2>\n

In a letter to Bally\u2019s board, Kim highlighted advantages of the operator accepting his hedge fund\u2019s takeover proposal. That includes an immediate premium for shareholders and potential risks to the gaming company in remaining a publicly traded entity.<\/p>\n

He added that given Standard General\u2019s long-running status as Bally\u2019s largest shareholder, the suitor is already intimately familiar with the target\u2019s operations, and that familiarity could speed up the deal if the offer is accepted.<\/strong><\/p>\n

\u201cBased 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,\u201d he concluded in the letter.<\/p>\n","protected":false},"excerpt":{"rendered":"

Bally\u2019s (NYSE: BALY) announced its board of directors has formed a special committee to evaluate the $15 per share takeover offer floated yesterday by Standard General — the hedge fund that owns about 23% of the casino operator\u2019s shares outstanding. The move was expected after Standard General, which is run by Bally\u2019s board member Soo […]<\/p>\n","protected":false},"author":46,"featured_media":199098,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,32093],"tags":[81903,81966],"acf":[],"yoast_head":"\nBally\u2019s Forms Committee to Mull Standard General Takeover Bid<\/title>\n<meta name=\"description\" content=\"Bally\u2019s Forms Committee to Mull Standard General Takeover Bid.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/ballys-forms-committee-to-mull-standard-general-takeover-bid\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bally\u2019s Forms Committee to Mull Standard General Takeover Bid\" \/>\n<meta property=\"og:description\" content=\"Bally\u2019s Forms Committee to Mull Standard General Takeover Bid.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/ballys-forms-committee-to-mull-standard-general-takeover-bid\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2024-03-12T19:33:36+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-03-13T17:10:16+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/01\/soo.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2000\" \/>\n\t<meta property=\"og:image:height\" content=\"1333\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/ballys-forms-committee-to-mull-standard-general-takeover-bid\/\",\"url\":\"https:\/\/www.casino.org\/news\/ballys-forms-committee-to-mull-standard-general-takeover-bid\/\",\"name\":\"Bally\u2019s Forms Committee to Mull Standard General Takeover Bid\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/ballys-forms-committee-to-mull-standard-general-takeover-bid\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/ballys-forms-committee-to-mull-standard-general-takeover-bid\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/01\/soo.jpg\",\"datePublished\":\"2024-03-12T19:33:36+00:00\",\"dateModified\":\"2024-03-13T17:10:16+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Bally\u2019s Forms Committee to Mull Standard General Takeover Bid.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/ballys-forms-committee-to-mull-standard-general-takeover-bid\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/ballys-forms-committee-to-mull-standard-general-takeover-bid\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/ballys-forms-committee-to-mull-standard-general-takeover-bid\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/01\/soo.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/01\/soo.jpg\",\"width\":2000,\"height\":1333,\"caption\":\"Standard General founder Soo Kim. 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