Bally’s Corporation shareholders have approved the company’s $4.6 billion takeover from Standard General, Bally’s largest shareholder. The move paves the way for a merger with The Queen Casino & Entertainment (QC&E), a portfolio company majority-owned by Standard General.
In July, Bally’s accepted a $4.6 billion acquisition offer from Standard General, with the hedge fund acquiring the company’s outstanding shares for $18.25 per share. The price represents a 71% premium over Bally’s 30-day average share price from March 8, the last trading day prior to a previous offer from Standard General of $15.
During a special meeting on Tuesday, Bally’s stockholders, including unaffiliated shareholders, strongly supported the merger agreement, securing the required majority vote. Shares held by Standard General, Sinclair Broadcast Group, and certain company executives were excluded from the vote.
After the merger, Bally’s will remain a publicly traded company. The company anticipates completing the merger in the first half of 2025, pending regulatory approvals and other customary closing conditions.
Bally’s noted that shareholders who opted to retain their shares will see their shares temporarily trade under the ticker symbol ‘BALY.T’ on the New York Stock Exchange. This process ensures that these shares remain active and valid throughout the merger process and beyond. These shares are expected to revert to the company’s original ticker symbol, ‘BALY,’ after the merger is finalized.
Standard General Managing Partner Soo Kim
In July, Soo Kim, Standard General Managing Partner, said the acquisition offered Bally’s stockholders a significant cash premium and the opportunity to participate in its expanded portfolio’s longer-term growth prospects. Kim also said that the addition of the complementary QC&E assets would build upon Bally’s attractive growth profile.
Following the merger, the combined company will manage 19 gaming facilities across 11 states and offer a diverse range of digital gaming and sports betting products. Bally’s reported a slight 0.4% year-on-year revenue decline to $630 million in Q3 2024, with growth in the UK online (up 11.8%) and North America Interactive (up 54.5%) segments offsetting declines elsewhere.
In particular, the company’s Casinos & Resorts segment experienced a 1.6% year-on-year drop to $353.4 million. Adjusted EBITDA also fell slightly to $137.7 million, while net losses widened to $247.9 million, although CEO Robeson Reeves called the results ‘relatively healthy,’ citing progress in key US markets.
Earlier this month, Bally’s also agreed to a management buyout of its Asian interactive business.
Original article: https://www.yogonet.com/international/noticias/2024/11/20/85960-ballys-shareholders-approve-46-billion-buyout-from-standard-general
