QC&E shareholders received 30.5 million shares from the deal, with 22.8 million outstanding shares acquired for $18.50 a piece.
The agreement values the business at a considerably lower level than the $35.00 per share offer Standard General previously made in January 2022, which was ultimately rejected.
However, it is higher than the $15 per share that was initially offered by the fund in spring last year.
Following the completion of the agreement, Bally’s remains a publicly owned company which is temporarily traded under a “BALY.T” ticker on the NYSE.
Starting today, the stock has reverted to the “BALY” symbol.Soo Kim, Standard General managing partner, said in July 2024: “The transaction provides Bally’s stockholders with a significant cash along with certainty of value for their investment or, if they elect to retain their shares, the opportunity to participate in the longer-term growth prospects of our expanded portfolio and significant development pipeline.
“The addition of the complementary QC&E assets builds upon the Company’s attractive growth profile. We look forward to working with the Board of Directors and the Company’s senior management team as they continue to execute on their business plan.”
Bally’s shareholders back deal
An overwhelming majority of shareholders approved the merger with 98.9% opting to vote to complete the deal.
However, the transaction had previously faced public opposition and a lawsuit from shareholders who opposed the deal at the $15 price.
K&F Growth Capital managing partners Dan Fetters and Edward King penned an open letter in April 2024 urging shareholders to oppose the “woefully undervalued” deal.
They said: “Moon shot bets on huge, unfunded development projects, failed U.S. online execution, casino resort properties underperforming its regional peers, an over-levered balance sheet with little near-term prospects for de-levering and irresponsible capital allocation decisions have driven the stock and bonds to a point of disinterest from the investing community.”
