Bally’s-Gamesys Merger Closes Oct. 1st
The proposed merger between US casino operator Bally’s and UK-based iGaming operator Gamesys has finally been given an official closing date: October 1st, 2021. The deal is still subject to several regulatory conditions, namely in the US. The terms of the highly lucrative agreement were initially announced back in March 2021.
The merger between US casino operator Bally’s and UK-based online gaming operator Gamesys finally has official closing date: October 1st, 2021. ©naor4040/Pixabay
Merger Has Already Received Regulatory Approval from GB Gambling Commission
The highly renowned US casino operator Bally’s has provided observers with a much-anticipated update concerning its imminent takeover of UK-based online gambling operator Gamesys. The merger finally has a scheduled date and it’s just around the corner — on October 1st, 2021, to be exact.
The deal was always expected to close by the end of Q4, so an announcement date of October 1st makes sense in light of this. The two businesses had in fact set out a rough timeline for the acquisition back in May 2021.
The merger between Bally’s and Gamesys has already received some of its necessary regulatory approvals, such as from the Gambling Commission in the United Kingdom. The conditions of the merger are outlined in an original scheme document.
This document specifies that section 102(4)(a) of the Gambling Act must be adhered to by the merger. Furthermore, it requires all current licenses held by the Gamesys group to continue being in effect after the deal closes.
US Regulatory Approvals Also Apply to Bally’s-Gamesys Merger
In addition to regulatory conditions in the United Kingdom, Gamesys’ merger with Bally’s must also gain strict regulatory approvals in the United States. A court hearing for this exact purpose is currently scheduled for September 30th, 2021.
Provided that the court hearing concludes in a successful manner, and all necessary conditions are fully met, the merger between the two gambling giants will be officially set to take place on October 1st — or at the very least soon afterwards.
If all goes according to plan, then Gamesys shares will be delisted from the New York Stock Exchange by 8:00am on October 4th. New Bally’s shares will take their place by 9:30am on the very same day.
Terms Were Agreed on Back in March 2021
The terms of Bally’s takeover of Gamesys were initially put down on paper all the way back in March 2021, when Gamesys first agreed to a potential takeover by the US casino operator giant.
Bally’s proposed a whopping sum of £2 billion to take over the UK-based Gamesys, an offer which the latter party immediately accepted. This stands at £18.50 per share, which ends up being a premium of roughly 40% on Gamesys’ January 25th share price of £13.30.
Bally’s offer also includes a unique proposition for stakeholders in the form of something which the operator terms as a “Share Alternative.” This option would allow stakeholders to acquire Bally’s shares at a rate of 0.343 per Gamesys share.
After the terms of the agreement were publicly announced, Gamesys shares rose by more than 18%. Also worth noting is that the merger specifies that Gamesys CEO Lee Fenton is set to lead the combined company.
Commenting on the at-the-time proposed merger between the two gambling operators, Fenton highlighted the two’s shared vision and passion for capitalizing on technology disruptors.
Bally’s Experienced Encouraging Q2 2021 Results
It has been a pretty bright and positive year for casino operator Bally’s, who in August 2021 reported very encouraging revenue results for Q2 2021, achieving a much-needed year-on-year increase when compared to the same quarter last year.
The operator reported a net profit of $68.9 million for the period, which stood as an increase of $92.5 million from Q2 2020. This is hardly surprising, given that the second quarter of 2020 was defined by widespread closures and lockdowns in response to the sudden outbreak of the coronavirus (Covid-19) pandemic.
In light of this, Bally’s president and CEO George Papanier emphasized that he was confident that the operator would continue its already strong recovery:
“We had record revenue and earnings performance in the quarter and remain confident that we will continue to benefit from rebounding demand across our land-based portfolio. Improved consumer confidence, minimal capacity restrictions and our disciplined operating strategy all contributed to extremely strong numbers across the board in the second quarter.”– George Papanier, President and CEO, Bally’s
