Bally’s Investors Approve Standard General Takeover

Bally’s (NYSE: BALY) announced Tuesday that its shareholders approved a previously announced takeover by Standard General, the hedge fund that’s the biggest investor in the regional casino operator.

In March, Standard General, which is controlled by Bally’s Chairman Soo Kim, floated a $15 per share takeover offer. That was upped to $18.25 a share, which the regional casino operator accepted in July. The March offer arrived 26 months after the hedge fund attempted to acquire the gaming company in January 2022, offering $38 a share at that time.

The merger agreement has been adopted by the affirmative vote of the holders of a majority of the outstanding shares of the Company’s common stock as of the October 21, 2024 record date for the Special Meeting and the affirmative vote of the holders of a majority of the holders of the outstanding shares of the Company’s common stock as of such record date,” according to a statement issued by Bally’s.

The Rhode Island-based casino operator said the affirmative vote did not include shares controlled by Standard General, Sinclair Broadcasting, Noel Hayden “and certain executive officers and a director of the company.”

Bally’s Will Remain Publicly Traded

The closing date of the transaction is expected to be at some point in the first half of 2025, and in a unique though not unheard of twist, Bally’s will remain a publicly traded entity, meaning Standard General isn’t taking it private in the traditional sense.

The company said there will be a period of time in which its ticker will be “BALY.T” before reverting back to “BALY,” adding that the New York Stock Exchange (NYSE) will remain the listing venue for the stock.

“At the Company Effective Time, the Rolling Company Shares will remain outstanding, and it is expected that such shares will revert to the original ‘BALY’ ticker symbol,” according to the press release. “The Rolling Company Shares will remain registered with the SEC and is expected to continue trading on the NYSE or another securities exchange in the United States, based on applicable listing requirements.”

Regulatory Issues Not Expected

It’s likely that Bally’s and Standard General will be able to adhere to the aforementioned closure timeline because no federal regulatory pushback is expected.

The Queen Casino & Entertainment Inc., an affiliate of the hedge fund, is the entity that’s buying Bally’s.