The gaming enterprise, Bally’s Corporation, has assembled a group to investigate a possible acquisition following a purchase proposal of $38 per share. The bid originates from Standard General, a hedge fund located in New York that currently holds a substantial portion of Bally’s shares (exceeding 20%) and whose chief executive, Soo Kim, possesses considerable knowledge of the company. Although the transaction values Bally’s at more than $2 billion, there is no assurance of its completion. Bally’s aims to thoroughly evaluate all available choices, leading them to establish a dedicated committee composed of autonomous board directors to manage the matter. However, Kim appears quite optimistic. He highlighted Standard General’s extensive history with Bally’s and conveyed a willingness to finalize the agreement promptly. He has even secured a funding strategy that incorporates sale-leaseback contracts and other mechanisms.
The typical corporation will only move forward with this agreement if it receives approval from the designated group.
Kim further stressed that their dedication to the organization stays firm, irrespective of the result. They plan to be enduring investors, even if the designated group doesn’t support the agreement or if the company’s public investors reject it.
