Bally’s Hires Investment Bank, Law Firm to Mull Standard General Takeover Bid

Bally’s Corp. (NYSE:BALY) announced today it has hired an investment funds cant and jurisprudence unfluctuating to judge a takeover offer. It formed a special committee before this month to look at a $38 per share proposal made by parry monetary fund Standard General.

The special committee revealed it retained Macquarie Capital (USA) Inc. as its financial advisor and Potter Philip Anderson & Corroon LLP as its sound counsel. Macquarie and the natural law stiff will judge the acquisition tender “as wellspring as any possible strategic alternatives to the proposal.” Bally’s did non say if other suitors are summons for the company, but it did describe the publicised offer up as “preliminary” and “non-binding.”

The Special Committee cautions Bally’s stockholders and others considering trading the company’s securities that no decisions hold been made with esteem to the proposal,” according to a statement.

In a belatedly January Form 13/D filing with the Securities and Exchange Commission (SEC), Standard General — the parry monetary fund that’s Bally’s largest shareholder — revealed a takeover offer for the gaming company, valuing it at just over $2 billion.

Bally’s Committee Sans Kim

Standard General is controlled by Soo Kim, a fellow member of Bally’s board. In the aforementioned regulatory filing, the hedge in monetary fund says it will non act on the trade unless it’s sanctioned by a special committee.

That committee is comprised of “independent and disinterested directors,” implying Kim isn’t a fellow member of that group. However, he is Bally’s chairman of the board. The cassino operator’s board of directors has ennead members, tierce of which are described as “independent” on the company’s website.

Bally’s CEO Lee Yuen Kam Fenton is also a director. That could be a relevant fact because he previously led UK-based Gamesys. When Bally’s acquired the UK-based online gaming company finally year, some Gamesys investors opted to take on equity inwards the purchaser when the caudex was trading compass north of $50, indicating investors from that company power prospect Standard General’s bid for Bally’s as a lowball offer.

There is utter among analysts that masking Bally’s that the elude fund’s proposal is more of a starting point and that the proffer could live raised.

However, a higher bid hasn’t been publically revealed as of yet, nor has the cassino company’s caudex traded upwards to $38. It resides at $35.20 at this writing.

Bally’s Could Remain as Is

It’s possible Standard General raises its offer, or that another suer emerges. But for now, those scenarios are just speculation.

There put up follow no more assurance that any determinate offer up will be made or accepted, that any concord will be executed, or that any transaction testament be consummated,” said the gaming manipulator inwards the statement.

Bally’s currently runs 14 casinos in 10 states and a gymnastic horse racetrack inward Colorado, as comfortably as iGaming, day-after-day fantasy sports (DFS), and sports wagering entities.

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