(Bloomberg) — Bally’s Corp. investor Standard General offered to buy the remaining shares of the casino and entertainment company at a 30% premium, swooping in after the stock’s recent tumble.
The private-equity firm, already Bally’s largest holder with a 21% stake, said in a filing Tuesday that it proposed paying $38 a share. A deal won’t move forward unless it’s approved by a special committee of independent directors and the majority of other shareholders, Standard General said.
Standard General may be getting a bargain with Bally’s shares down 60% from their March highs, through Monday’s close. The gaming industry has been under pressure with the pandemic hurting customer traffic.
“As a result of our long-term involvement with the Company and its predecessor, we have a detailed understanding of Bally’s, its business and assets, which will enable us to move quickly to finalize a transaction,” Standard General said in a letter to the board included in the filing.
Bally’s didn’t immediately respond to a request for comment. Shares of the Providence, Rhode Island-based company rose 23% at 9:38 a.m. in New York.
The firm doesn’t foresee any trouble getting financing for a deal, which it expects to pay for with sale and lease-back and other long-term financing arrangements.
If the transaction isn’t approved, Standard General said that wouldn’t affect its relationship with the company and it would plan to remain a long-term shareholder.
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
