PROVIDENCE – The board of directors for Bally’s Corp. has formed a special committee to consider a recent nonbinding buyout offer from its largest shareholder, hedge fund Standard General LP.
Standard General submitted a letter to Bally’s board of directors on Jan. 25 that it would pay $38 a share – nearly 30% more than the closing price of $29.27 on the New York Stock Exchange that day. The share price for Bally’s stock closed at $35.63 on Thursday.
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Bally’s said the special committee is made up of independent and disinterested directors. The group has been authorized to evaluate the preliminary proposal and “any potential strategic alternatives to the proposal.”
Standard General, based in New York, holds nearly 20% of Bally’s shares. The hedge fund’s founder and managing partner, Soohyung Kim, has been chairman of Bally’s since 2019. After Standard General, the top 10 largest shareholders of Bally’s stock are investment funds and a mutual fund that hold a combined 23% of the shares.
The fortunes of Bally’s are of special significance to the state because the two Rhode Island casinos, Bally’s Twin River Lincoln Casino Resort and Bally’s Tiverton Casino & Hotel, are two of the biggest sources of funding for the state’s $13 billion budget.
Bally’s also employs 1,800 people in Rhode Island and last year inked a 20-year lottery contract with the state and International Game Technology PLC that allows Bally’s to strengthen its control over casino gambling in Rhode Island.
