Casino buyout puts new spin on public-vs.-private

Bally's

26/07/2024 16:00

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Jonathan Guilford
       NEW YORK, July 26 (Reuters Breakingviews) - Hedge fund
Standard General is offering Bally's investors a $4.6 bln deal
that looks less than generous, but with the option to take
risky, semi-liquid over-the-counter stock instead of cash.
Unappealing as that is in this case, it shows how the lines
between worlds are blurring.
    Full view will be published shortly.
    Follow @JMAGuilford on X
    
    CONTEXT NEWS
    Bally’s said on July 25 that it had agreed to a merger under
which hedge fund Standard General would pay $18.25 per share,
valuing the U.S. casino operator at $4.6 billion including debt.
Standard General is already Bally’s largest shareholder.
    The hedge fund said in March that it had approached Bally’s
with a $15-per-share offer. Two years earlier it had
unsuccessfully offered $38 per share.  At the time the March
offer was made, Bally’s shares had fallen 86% from their 2021
highs.
    As part of the transaction, Standard General will merge
Bally’s with portfolio company The Queen Casino. The merged firm
will remain publicly traded, though likely not on a major stock
exchange.

 (Editing by John Foley and Sharon Lam)
 ((For previous columns by the author, Reuters customers can
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Jonathan.Guilford@thomsonreuters.com))