Bally’s shareholder Standard General has submitted a proposal to acquire the remainder of the US gaming operator, valuing the entire business at more than $2bn (£1.48bn/€1.77bn).
In a letter to the Bally’s board, Standard General – which currently owns more than 20% of the business – said it would pay $38.00 for every share of the business that it does not own. This would price Bally’s as a whole at $2.07bn.
“Our proposed transaction would allow the company’s stockholders to immediately realise an attractive value, in cash, for their investment and provides stockholders certainty of value for their shares, especially when viewed against the operational risks inherent in the company’s business and the market risks inherent in remaining a public company,” Standard General chairman Soo Kim said.
Kim also noted that the $38.00 price represented a 30% premium compared to Bally’s closing share price of $29.27 on 24 January. Bally’s share price has since risen on the news, closing on 25 Ja..