In a successful bid, hedge fund Standard General has acquired the remaining shares of Bally’s Corp. The purchase, finalized on Thursday, was made at $18.25 per share, representing a substantial 71 percent premium over the average price per share before the offer was made public. This marks the third attempt by Standard General to acquire Bally’s.
As part of the deal, Bally’s Corp will be merged with Queen Casino & Entertainment (QC&E), an operator also owned by Standard General. The newly combined company will remain publicly traded and will boast a collective portfolio of 19 casinos spanning 11 states.
Standard General, led by Soo Kim who doubles as Bally’s chairman, had previously offered $38 per share for the company in January 2022, but the offer was turned down. A subsequent offer of $15 per share in March prompted Bally’s to form a special committee to evaluate the bid. Ultimately, the committee found the latest offer to be favorable and recommended its acceptance.
Kim stated, “The transaction 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. The addition of the complementary QC&E assets builds upon the Company’s attractive growth profile. We look forward to working with the Board of Directors and the Company’s senior management team as they continue to execute on their business plan.”
The merger between Bally’s Corp and Queen Casino & Entertainment signifies a strategic move that aims to leverage the strengths of both entities and create a more robust and diversified gaming company. By combining their resources, expertise, and assets, the new company is poised to enhance its market position and capitalize on emerging opportunities in the gaming industry.
Additionally, the expanded portfolio of 19 casinos across 11 states presents a significant growth potential for the newly formed entity. With a broader geographic presence and a more extensive customer base, the company is well-positioned to drive revenue growth and profitability in the coming years.
Moreover, the merger is expected to result in operational synergies and cost efficiencies, which can lead to improved financial performance and shareholder value. By streamlining operations, eliminating redundancies, and optimizing resources, the combined company can enhance its competitiveness and create sustainable long-term value for its stakeholders.
Overall, the merger between Bally’s Corp and Queen Casino & Entertainment represents a strategic opportunity to create a stronger and more competitive gaming company that is well-equipped to navigate the evolving landscape of the industry and deliver sustainable growth and value in the long run.