bscnews023   Album Posted Jul.27th, 2024, viewed 60 times

Standard General Acquires Bali In $975M Deal

Bally’s Corporation, a renowned global gambling and entertainment giant, announced that the company is set to be acquired by Standard General, its largest shareholder, for $975 million. The New York-based hedge fund, which currently holds about 25% of Valy's shares, offered the acquisition at $18.25 per share. The valuation represents a significant increase over the previous offer and reflects a 71% premium over the price prior to the initial acquisition offer in March.

The acquisition is awaiting approval from shareholders and regulators and is expected to conclude in the first half of 2025. "I and some of the other large internal shareholders believe the future is bright and want to put our money where our mouths are," said Su Kim, president of Bali and founding partner of Standard General

As part of the deal, Vallis will merge with Queen Casino & Entertainment, the majority shareholder of Standard General, which currently operates four casinos across three states. The merger will expand the combined company's portfolio to 19 casinos in 11 states, including three in Illinois, according to a company press release.

The deal follows an earlier offer in March, when Standard General offered $15 per share, valuing the company at around $648 million. A special committee formed by the Bali board, advised by Macquarie Capital, has now agreed to $18.25 per share after evaluating the offer along with other strategic alternatives.

Special Committee Chairman Jamin Patel highlighted the benefits of the deal, saying, "After detailed consideration by the Special Committee, with the help of external financial and legal advisors, we have determined that Standard General's cash consideration provides meaningful and immediate value to shareholders."

a crucial moment

The acquisition comes at a pivotal time for Vallis, which recently secured funding to conduct an ambitious $1.7 billion casino project in Chicago. According to the Chicago Tribune, despite significant financial challenges that saw the company's stock price drop after rejecting Standard General's $38-per-share offer in 2022, Vallis has secured the funds needed to continue major developments, including the Chicago casino complex.

The company's Chicago project, which includes turning the Freedom Center printing plant site into a state-of-the-art casino complex, is a staple of Bali's expansion strategy. The project is backed by $940 million in funding from Gaming and Leisure Properties and includes plans for a 500-room hotel and large gaming and entertainment venues.

Bali's acquisition of Standard General is seen as a strategic improvement that ensures the company's long-term growth and stability. Lance Vitanza, senior analyst at TD Cowen, noted the potential for a successful termination of the deal, citing the firm relationship and track record of Standard General effectively managing casino properties. 프라그마틱 슬롯 사이트