A Manhattan investment firm has expressed interest in acquiring Bally’s Corporation, prompting the establishment of a dedicated committee to evaluate the proposition.
This non-obligatory overture is under scrutiny by an autonomous board comprised of impartial directors devoid of any conflicting interests. The group, Standard General, proposes a cash consideration of $38 per share for the entirety of Bally’s outstanding stock. This assessment places the casino enterprise’s worth in excess of $2 billion. Nevertheless, Bally’s has issued a cautionary statement indicating that the finalization of an agreement is not assured.
The committee’s purview encompasses the assessment of Standard General’s proposal alongside any other prospective strategic avenues.
Notably, Standard General currently holds the position of Bally’s most substantial shareholder, commanding ownership of over 20% of the company. Soo Kim, presently Bally’s chairman, serves as the managing partner and chief investment officer of Standard General. He posits that this intimate knowledge of Bally’s will facilitate an expedited and streamlined transaction. Furthermore, Kim articulated that the transaction’s financial backing would be secured through a sale-leaseback arrangement in conjunction with supplementary long-term financing mechanisms.
Standard General issued a public declaration stating their intention to withdraw from the agreement without explicit consent from the designated committee.
The CEO of Standard General, Soo Kim, aimed to alleviate concerns. He conveyed, “We understand and respect the significance of the committee’s role. Should they disapprove of the arrangement, or if the stakeholders reject it, we accept their decision. We won’t engage in any forceful actions. Our commitment remains steadfast, and we maintain our confidence in the company’s prospects.”