Bally’s Corporation Share Price Rockets On Possible Acquisition
American casino operator, Bally’s Corporation, is subject to a significant bid proposed by Soohyung Kim, a managing partner of colossal hedge fund firm, Standard General. Kim’s company already have a sizeable 20% stake in Bally’s, but are keen to fully acquire the business.
In an open letter to the board of Directors, Kim signalled his intention to purchase the remaining shares at a heavily uplifted price. In a tempting offer, Standard General positioned themselves to buy the shares at $38, a massive 30% increase on Monday’s close of trade price. Analysts therefore project the deal to value Bally’s Corp. at S2b.
This triggered an instant upsurge in the market, with stocks rising to $35.85 per unit, a 23% climb on the previous trading day.
The Rhode-Island based concessionaire is currently focused on its own takeover activity, with a deal struck to acquire huge Las Vegas venue, Tropicana. The complex presides over 35 acres of land, and facilitates considerable gaming floor space and hotel facilities. Bally’s have asserted that this move, approximated to be worth $308m, will continue as planned.
The firm’s latest Las Vegas adventure adds to a portfolio of properties across New Jersey, Mississippi, Colorado, Nevada, and their native state Rhode Island.
Lead negotiator Kim has declared his optimism in the potential of striking a deal, and assures stakeholders that he does not ‘anticipate any issues in securing financing for the transaction’ Standard General have certainly demonstrated their intent to acquire the corporation.
