Bally’s Assessing Potential Takeover Bid
Bally’s Corporation has announced that it has established an independent special committee to assess the $2 billion (£1.48bn/€1.77bn) takeover bid submitted last month by Standard General. The hedge fund’s bid to acquire all of Bally’s outstanding shares would amount to $38 in cash per share. This would price Bally’s at $2.07 billion.
Bally’s Corporation has established an independent special committee to assess the $2 billion (£1.48bn/€1.77bn) takeover bid recently submitted by Standard General. ©juergen-polle/Pixabay
No Assurance Offer Will be Accepted, Says Bally’s
Renowned betting operator Bally’s Corporation has revealed that it has started an independent special committee to assess the proposed $2 billion (£1.48bn/€1.77bn) takeover bid submitted last month by the New York-based hedge fund Standard General.
Announcing the news to its investors on the New York Stock Exchange, Bally’s specified that the special committee is composed of independent and disinterested directors and is authorized to evaluate the preliminary, non-binding proposal from the New York-based investment firm, along with any potential strategic alternatives to the proposal which it should consider.
Initially submitted on January 25th, 2022, Standard General’s bid offers to acquire all of the remaining shares of Bally’s that it does not already own for $38 in cash per share. This would price Bally’s at a total of $2.07 billion.
When providing a statement to investors on the topic of the formation of the committee, Bally’s Corporation clarified that, despite the committee’s founding, there can naturally be no certain guarantee that the operator would accept Standard General’s bid:
“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 $38.00 share price proposed by Standard General represented a 30% premium compared to Bally’s closing share price of $29.27 the day prior to the bid. It is worth noting that Bally’s share price increased to $35.85 on January 25th and closed at $35.63 on February 3rd.
Bally’s Planning to Construct Chicago Casino Resort
In recent Bally’s news, the operator announced in November 2021 that it was planning to build and operate a massive new $1.6 billion land-based casino resort in the city of Chicago, Illinois. The facility would become its flagship property — provided the proposal is accepted.
Tentatively titled ‘Bally’s Chicago’, the project is expected to include a casino, hotel and entertainment facilities and will be built over two separate phases. The first of these will have $1 billion allocated towards establishing a physical casino, which is set to include 2,700 slot machines and 95 table games, as well as an all-suite luxury hotel, outdoor music venue, green space and dining options.
The second phase of Bally’s Chicago project will see $600 million going towards adding up to 4,000 total gaming positions, a 400-room hotel tower with a rooftop pool and bar, an amenity terrace, a 3,000-seat indoor entertainment venue, a 20,000sq ft exhibition space and a comprehensive food and beverage service.
Local Connection is Driving Bally’s Chicago Plans
Placing its origins in the city of Chicago, Illinois, Bally’s chairman Soo Kim accounted for the operator’s local roots as a driving factor behind its decision to submit a plan for constructing a massive land casino in the city:
“Chicago is a dynamic, world-class city, which is why we are committing to make a $1.6bn investment in establishing Bally’s Chicago as our flagship, and the only property in its class in the Chicagoland market. This property will be built, owned, and operated by Chicagoans, with a focus on minority and women investors, contractors, suppliers, consultants, and employees. It will generate tax revenue, create good-paying jobs, and attract international, national, and local visitors for generations to come.”– Soo Kim, Chairman, Bally’s Corporation
In light of this, Bally’s Chicago land casino development has plans to give back to the city and its residents, with director Wanda Wilson clarifying that the project will offer a wealth of opportunities and resources for Chicagoans:
“From design and build to operations and ownership, Bally’s Chicago is committed to providing meaningful leadership roles, well-paying jobs, and investment opportunities for all Chicagoans. I have spent my career in gaming and am proud to be a director and investor in Bally’s. Its commitment to innovation, culture and diverse ownership makes it a leader in the industry. Everyone knows the Bally name, and that global recognition will attract visitors to Bally’s Chicago.”– Wanda Wilson, Director, Bally’s Corporation
Bally’s-Gamesys Merger Closed on October 1st, 2021
Back in late September 2021, the proposed merger between Bally’s and UK-based iGaming operator Gamesys was finally given an official closing date: October 1st, 2021. It was always expected to close by the end of Q4 2021, having already received certain necessary regulatory approvals by that point.
Nevertheless, the merger was still subject to further regulatory approvals, such as section 102(4)(a) of the UK Gambling Act. In addition to UK regulations, the merger needed to attain regulatory approvals in the United States.
