Bally Technologies is to launch a modified 'Dutch auction' tender offer to purchase shares of its common stock.
Bally will offer to purchase up to $400m in value of its common stock at a price no greater than $40 and no less than $34.50 per share. The tender offer commences today and expires on May 6, unless extended.
A modified Dutch auction tender offer allows stockholders to indicate how many shares and at what price they wish to tender their shares within the specified share price range. Based on the number of shares tendered and the prices specified by the tendering stockholders, Bally will determine the lowest price per share within the range that will allow Bally to purchase $400m in value of its common stock, or a lower amount depending on the number of shares properly tendered and not properly withdrawn.
All shares purchased by Bally will be purchased at the same price. If the tender offer is fully subscribed, then $400m in value of common stock will be purchased, representing approximately 18.9 per cent to 21.9 per cent of Bally’s issued and outstanding shares as of April 7, 2011.
