Ballys Corporation has officially entered into a definitive merger agreement with Standard General L.P., marking a significant milestone in the companys history. This merger, valued at approximately $4.6 billion, is set to reshape the landscape of the gaming and entertainment industry.
The journey to this agreement has been a long one, with Standard General making several acquisition attempts over the years. The initial bid in 2022 was at $38 per share, followed by a lower offer of $15 per share earlier this year. This lower bid faced criticism from Ballys investor K&F Growth Capital, which accused Soo Kim and Standard General of attempting to acquire Ballys at a fraction of its fair value, leveraging Ballys already stretched balance sheet.
The final agreed-upon offer stands at $18.25 per share, representing a 71 percent premium on the volume-weighted average price per share as of 8 March, 2024, the last trading day before the initial cash acquisition proposal of $15.00 per share. This premium underscores the value and potential that Standard General sees in Ballys.
As part of the merger, Ballys will combine with The Queen Casino & Entertainment (QC&E), a regional 바카라 operator majority-owned by Standard General. This strategic move will add four complementary properties to Ballys existing portfolio of 15 domestic 바카라 properties, enhancing geographic and market diversity.
Expansion of 바카라 property portfolio
Robeson Reeves, CEO of Ballys, (pictured above), expressed optimism about the merger, stating, The addition of four complementary properties through this merger to our existing 15 domestic 바카라 properties will add further geographic and market diversity to our portfolio. With QC&Es development pipeline recently completed or already well underway, we see a path toward additional revenue and EBITDAR growth and value accretion as those projects are completed in 2025. We look forward to bringing our ultimate vision to bear and to working closely with the Standard General team to execute on that vision.
The transaction values Ballys at approximately $4.6 billion in enterprise value. Under the Securities Act of 1934, the combined company will remain a publicly traded registrant, allowing Ballys stockholders to retain their stock in a rollover election to the combined company.
Soo Kim, Managing Partner of Standard General, highlighted the benefits of the merger for Ballys stockholders, stating, The transaction provides Ballys 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 Companys attractive growth profile. We look forward to working with the Board of Directors and the Companys senior management team as they continue to execute on their business plan.
This merger comes on the heels of Ballys securing $2.07 billion in funding for its Chicago Casino and Hotel Tower, further solidifying its position in the market and paving the way for future growth and expansion.
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