Bally’s Special Committee Retained Macquarie as Financial Advisor

Omnichannel gaming and entertainment company Bally’s Corporation announced in a press release today the special committee decided to retain the services of current financial and legal advisors in consideration of the acquisition proposal of Standard General.

Evaluating the Proposal

The special committee of independent and disinterested directors Bally’s Corporation formed to evaluate the bid tabled by the Standard General hedge fund last month retained the services of Macquarie Capital Inc. as a financial advisor and Potter Anderson & Corroon LLP as its legal adviser in connection to the evaluation of the offer and any other strategic alternatives.

In January, Standard General, a New York-based hedge fund and the largest shareholder of Bally’s, offered to acquire the remaining shares of the company for $2.07 billion. The hedge fund run by Bally’s chairman Soohyung Kim already has a 20% stake at the gaming company and the proposal equates to $38.0 per share, offering Bally’s shareholders a 30% premium on the share price close preceding the announcement.

The statement released by the special committee also warned holders of Bally’s Corporation stock and others that are considering trading Bally’s securities that it did not reach a final decision whether the acquisition bid should be accepted or rejected.

Further, the committee stated that “there can be no assurance that any definitive offer will be made or accepted, that any agreement will be executed or that any transaction will be consummated.” Bally’s will not release any updates related to this or any other transaction except for those that are required under applicable law.

Awaiting Q4 and Full-Year 2021 Results

The announcement that the special committee retained the financial and legal advisors in consideration of the proposed acquisition came just days before the company’s fourth-quarter and full-year 2021 report scheduled to become available to the public on February 24, 2022, prior to the market opening.

In November, Bally’s Corporation reported third-quarter record revenue of $314.8 million, up 169.9% year-over-year and a record high retail casino revenue of $301.6 million. For the acquired Gamesys, a transaction that closed on October 1, Bally’s registered revenue of $278.6 million but as it closed outside of the quarter, the results of Gamesys were excluded.