Shares of Bally’s Corp. reached $14.67 in trading today before subsiding. The news came as the company’s board agreed to evaluate a buyout proposal from company Chairman Soo Kim and his Standard General hedge fund.
The Standard General offer values Bally’s stock at $15 per share, but also leaves the door open to “any potential strategic alternatives to the proposal.” Bally’s has announced that it will form a special committee composed of “independent and disinterested directors” to mull the offer.
Board members include CEO Robeson Reeves and President George Papanier, as well as a number of independent directors. No timeline was given for the special committee’s consideration.
Founded by Kim in 2007, Standard General specializes in investment in distressed debt. The hedge fund is credited with managing the bankruptcies of Aliante Hotel & Casino in Las Vegas and Greektown Casino in Detroit, now owned by Penn Entertainment and rebranded Hollywood at Greektown. Standard General was also involved in the bankruptcies of Radio Shack and American Apparel.
Standard General teamed with Apollo Global Management (which operates the Venetian and Palazzo in Las Vegas) to take Tegna Inc. private in February 2022. The sale would have resulted in the selloff of a number of TV stations owned by Standard General. The agreement was terminated in May 2023.
