Standard General Buys Out Casino Operator Bally’s for $4.6B
Standard General, the hedge fund managed by Bally’s Corporation chairman Soo Kim, has successfully acquired the casino operator after numerous efforts, in a deal worth $4.6 billion, including debt.
Under the terms of the agreement, Bally’s stockholders will receive $18.25 per share, a 71% premium over the 30-day average stock price from March 8, the last trading day before Standard General’s earlier offer of $15. Standard General is also providing $500 million to aid with the transaction.
Shareholders will have the option to retain their shares instead of taking cash with major shareholders. Sinclair Broadcast Group and Noel Hayden have already opted to do so. As a result, at least 47% of Bally’s outstanding fully diluted equity interests will be rolled over into the combined company.
As part of the acquisition, Bally’s will merge with The Queen Casino and Entertainment (QC&E), another regional operator owned by Standard General. QC&E operates four casinos across three states, including DraftKings at Casino Queen in East St. Louis, IL, the Queen Marquette in Marquette, IA, and the Queen Baton Rouge and Belle of Baton Rouge in Louisiana.
Bally’s already operates a casino in Shreveport thanks to a recent partnership with real estate investment trust Gaming and Leisure Properties (GLPI). The agreement with Standard General will allow the corporation to own and/or operate three of the state’s 20 licensed casinos. Adding Bally’s holdings, the combined company will operate 19 gaming facilities in 11 states. It will remain publicly traded.
The buyout “provides Bally’s stockholders with a significant cash premium along with certainty of value for their investment or, if they elect to retain their shares, the opportunity to participate in the longer-term growth prospects of our expanded portfolio and significant development pipeline,” Soo Kim, Bally’s chairman and managing partner of Standard General,” said.
The approved offer was Standard General’s third to Bally’s in three years. The initial offer was for $38 per share in January 2022. Bally’s quickly rejected that price. Then-CEO Lee Fenton claimed the company had “substantial opportunities before it.”
The transaction is anticipated to be completed in the first half of 2025. Standard General, which presently owns around 23% of Bally’s stock, plans to integrate its operations with Bally’s, increasing the company’s growth potential and market reach.