Bally’s Corporation has agreed a merger with Standard General in a deal worth around US$4.6bn expected to close in the first half of 2025.
The offer is worth $18.25 per share in cash, representing a 71 per cent premium on the company’s 30-day volume weighted average price prior to the initial Standard General proposal.
Standard General, whose managing partner Soo Kim doubles up as chairman of Bally’s, already has a 25 per cent stake in the gaming giant and has submitted transaction offers dating as far back as 2022.
In March this year, Bally’s appointed a special committee to evaluate a Standard General offer of $15 per share, a 41 per cent premium on the company’s closing share price on the Friday before the offer was sent.
The now-agreed $18-per-share offer will see Bally’s combine with The Queen Casino & Entertainment (QC&E) and its four casinos across three US states, including DraftKings at Casino Queen in East St. Louis, Illinois, and the Belle of Baton Rouge in Baton Rouge, Los Angeles.
QC&E’s redevelopment projects at two of two of its four properties are set to complete in 2025 and will “generate meaningful organic growth,” the company said.
Bally’s CEO Robeson Reeves said: “The addition of four complementary properties through this merger to our existing 15 domestic casino properties will add further geographic and market diversity to our portfolio.
“With QC&E’s 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 special committee formed by Bally’s unanimously recommended the merger and Bally’s board of directors now “recommends that stockholders approve the merger.”
Jaymin Patel, chairman of the special committee, said the offer from Standard General “delivers meaningful and immediate value to stockholders.”
“We look forward to working with the team at Standard General and QC&E as we move through the process to complete the merger,” Patel added.
Kim said: "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.”
