PROVIDENCE, R.I. - Bally's Corporation (NYSE: BALY; BALY.T), a prominent casino-entertainment company with annual revenue of $2.48 billion, has opened a new election period for its shareholders to retain shares in the company instead of receiving cash merger consideration. According to InvestingPro data, the company's stock is currently trading near its 52-week high of $18.0, following a remarkable 50.51% price increase over the past six months. This announcement follows the approval of Bally's mergers and related transactions at the Special Meeting of Stockholders held on November 19, 2024.
Shareholders of Bally's have the option to forgo the $18.25 per share cash merger consideration and instead choose to keep their shares outstanding after the merger completion. The new election period began today and will run until 5:00 p.m. Eastern time on January 17, 2025. Shareholders who wish to maintain their investment in Bally's must submit an Election Form indicating the number of shares they choose to retain.
As of the original election deadline on November 19, 2024, approximately 17.5 million shares had been elected to roll over, including significant stakes by Standard General L.P. and its affiliates. These shares have been assigned a new CUSIP number and are currently tradeable on the New York Stock Exchange under the ticker symbol BALY.T.
The Special Committee has approved the opening of this new election period but has not provided any recommendations to the shareholders regarding the rollover election or the retention of Rolling Company Shares. The completion of the merger, anticipated for the first quarter of 2025, is subject to regulatory approvals and other customary closing conditions. InvestingPro analysis reveals that Bally's operates with a significant debt burden of $5.09 billion and maintains a current ratio of 0.56, indicating potential liquidity challenges.
Bally's, with a growing omni-channel presence, manages 15 casinos across 10 states, and upon completion of the merger with The Queen Casino (EPA:CASP) & Entertainment Inc., will expand its portfolio to include additional casinos and an economic stake in a global lottery management business.
This news is based on a press release statement and aims to inform shareholders of their options without endorsing any specific course of action. The company has advised shareholders to contact their banks, brokers, or nominees to ensure timely execution of their election instructions, and has provided contact information for the information agent for further assistance.
In other recent news, Bally's Corporation has made significant strides in its expansion strategy. The company's shareholders have approved two pivotal mergers with SG Parent LLC and The Queen Casino & Entertainment Inc. These decisions, which were endorsed in special meetings, are anticipated to close in the first quarter and first half of 2025, respectively, pending regulatory approvals and standard closing conditions.
In financial developments, Bally's Corporation has released its third-quarter 2024 results. Details of the earnings call revealed a focus on forward-looking statements and non-GAAP financial measures. However, uncertainties were acknowledged due to the unpredictability of non-recurring expenses and one-time costs.
In analyst news, no upgrades or downgrades were reported for Bally's Corporation, with attention primarily on the upcoming Casino Queen merger. These recent developments underscore Bally's Corporation's proactive approach to managing potential risks while pursuing its expansion plans.
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