{"id":16725,"date":"2024-03-12T11:52:26","date_gmt":"2024-03-12T11:52:26","guid":{"rendered":"https:\/\/instantcasinos.com\/?p=16725"},"modified":"2024-03-18T11:43:00","modified_gmt":"2024-03-18T11:43:00","slug":"ballys-takeover-standard-general-offers-15-shares","status":"publish","type":"post","link":"https:\/\/instantcasinos.com\/blog\/2024\/03\/12\/ballys-takeover-standard-general-offers-15-shares\/","title":{"rendered":"Standard General Offers $15 Shares For Bally\u2019s Takeover"},"content":{"rendered":"
A New York-based hedge fund has sent stock prices flying after announcing a Bally’s takeover.<\/strong><\/p>\n Standard General announced an offer to acquire the remainder of Rhode Island-based gaming and sports betting corporation Bally’s for $15 a share, sending stock prices up by 25%.<\/p>\n The hedge fund already owns 25% of Bally’s, but has now delivered a non-binding letter to iGB, which has been published in a US Securities and Exchange Commission (SEC) 13D filing.<\/p>\n Standard General’s offer would see them acquire the entire remainder of the company’s outstanding shares.<\/p>\n Their offer of $15-per-share is at a 41% premium to Bally’s Friday closing price of $10.55 on the NYSE. The company’s total market capitalisation is currently more than $600million.<\/p>\n Since the news was announced, Bally’s share price has soared 25.24% to $13.30.<\/p>\n In the offer letter, Standard General has outlined: \u201cThe proposed transaction would be subject to the approval of the board of directors of the company and the negotiation and execution of mutually acceptable definitive transaction documents.<\/p>\n \u201cIt is our expectation that the board of directors will appoint a special committee of independent directors to consider our proposal and make a recommendation to the board of directors.\u201d<\/p>\n This latest offer marks the second time Standard General has attempted a full Bally’s takeover bid. The hedge fund also tried to buy the company for $38 a share back in January 2022.<\/p>\n The difference in offered share price means Standard General now believes Bally’s to be 50% less valuable than it was two years ago.<\/p>\n At the time of the first bid, Bally’s was valued at more than $2bn (\u00a31.48bn\/\u20ac1.77bn). Soo Kim, chairman of Standard General, noted the $38 share price represented a premium of 30% on Bally’s closing share price of $29.27 on January 24, 2022.<\/p>\n It was an up and down year for Bally’s in 2023. But their reduced share price is a reflection of the company’s continuing struggles.<\/p>\n Despite operating costs falling by 8.7% to $2.34 billion in 2023, Bally’s still posted a pre-tax loss of $167.6m. This included $289.7m in other expenses, and was still a $454.5m improvement on 2022’s figure.<\/p>\n However, adjusted EBITDA slipped to $527.3m in 2023, a drop of 3.9%.<\/p>\nBally’s Takeover Is Second Attempt By Standard General<\/h2>\n
Light At The End Of The Tunnel For Bally’s?<\/h2>\n