Published on: November 19, 2024, 07:12h.
Last updated on: November 19, 2024, 07:12h.
Bally’s (NYSE: BALY) shareholders have approved the takeover by Standard General, the hedge fund that is the largest investor in the regional casino operator.
Standard General, headed by Bally’s Chairman Soo Kim, initially offered $15 per share for the takeover, which was increased to $18.25 per share and accepted by the casino operator in July. The hedge fund’s first attempt to acquire the gaming company with a $38 per share offer in January 2022 was rejected.
The merger agreement has been approved by the majority of the shareholders of Bally’s common stock, according to a statement from the company.
Bally’s mentioned that the vote did not include shares held by Standard General, Sinclair Broadcasting, Noel Hayden, and certain executives and a director of the company.
Bally’s to Remain Publicly Traded
The transaction is expected to close in the first half of 2025, and Bally’s will remain a publicly traded entity post-acquisition. Investors will have the option to receive “rolling company shares” that will continue to trade on the open market.
Typically, when a private company acquires a public firm, the target’s shares are delisted. However, in this case, Bally’s shares will remain available on the stock exchange.
The company stated that initially the ticker will be “BALY.T” before reverting back to “BALY,” with the New York Stock Exchange (NYSE) continuing to be the listing venue.
“At the Company Effective Time, the Rolling Company Shares will remain outstanding, and it is expected that such shares will revert to the original ‘BALY’ ticker symbol,” according to the press release. “The Rolling Company Shares will remain registered with the SEC and is expected to continue trading on the NYSE or another securities exchange in the United States, based on applicable listing requirements.”
No Regulatory Issues Expected
The acquisition is likely to proceed smoothly as there is no expected federal regulatory pushback. Bally’s operates in 10 states with 15 casinos, and state regulators are anticipated to approve the deal without significant hurdles, given that the buyer is not a competing gaming company.
The purchase of Bally’s is by The Queen Casino & Entertainment Inc., an affiliate of Standard General.