PROVIDENCE, R.I. - Bally's Corporation (NYSE: BALY) announced today that its stockholders have given the green light for the merger with The Queen Casino (EPA:CASP) & Entertainment Inc., a move that aligns with the company's expansion strategy. The affirmative vote was cast during a Special Meeting of Stockholders, securing the adoption of the definitive merger agreement with Queen, which is majority-owned by Bally's largest stockholder, Standard General L.P.
In the same meeting, stockholders also gave a non-binding nod to the executive compensation related to the merger. The approval required a majority from the holders of the outstanding shares of Bally's common stock as of the October 21, 2024 record date, excluding shares held by key insiders and affiliates.
Additionally, shareholders who opted to retain their shares post-merger will see their stock reissued with a new CUSIP number and will trade under the ticker symbol "BALY.T" on the New York Stock Exchange until the merger is finalized. Bally's may open additional Rolling Share Election periods before the merger's completion, with details to be communicated via SEC filings.
The merger is expected to enhance Bally's portfolio with four additional casinos across three states, including a new presence in Iowa. It will also add over 900 employees to Bally's roster and extend its footprint in the global lottery management and services business through an investment in Intralot S.A. (ATSE: INLOT).
Bally's anticipates the merger to close in the first half of 2025, subject to regulatory approvals and customary closing conditions. The company, which already owns and manages 15 casinos, will continue to trade on the NYSE or another U.S. securities exchange after the merger.
The information provided in this article is based on a press release statement from Bally's Corporation.
In other recent news, Bally's Corporation has reported its third-quarter 2024 earnings and discussed its future outlook. The company's management, including Senior Vice President and Treasurer Charlie Diao, CEO Robeson Reeves, President George Papanier, and CFO Marcus Glover, highlighted forward-looking statements and non-GAAP financial measures during the earnings call.
These developments also included the acknowledgment of potential financial uncertainties, as the team was unable to predict non-recurring expenses and one-time costs. Despite these uncertainties, Bally's Corporation is preparing for a special shareholders meeting to discuss a pivotal topic: the Casino Queen merger.
These recent developments underscore the company's strategic growth initiatives and its proactive approach to managing potential risks and uncertainties. As part of these initiatives, the company is focusing on the Casino Queen merger, which will be discussed in the upcoming special shareholders meeting.
Investors and stakeholders are keenly awaiting the outcomes of this meeting, which could significantly shape the company's future trajectory. The management's cautious yet forward-looking perspective, coupled with the strategic growth initiatives, are key aspects of the company's recent developments.
InvestingPro Insights
As Bally's Corporation (NYSE: BALY) moves forward with its merger plans, InvestingPro data provides additional context to the company's financial position and market performance. The company's market capitalization stands at $725.9 million, reflecting its current market valuation as it prepares for expansion.
InvestingPro Tips highlight that Bally's management has been aggressively buying back shares, which could be seen as a vote of confidence in the company's future prospects, including the upcoming merger. This aligns with the company's strategic moves to enhance shareholder value.
The stock has shown a strong performance, with InvestingPro data revealing a 58.5% price total return over the past year. This upward trajectory is further emphasized by the stock trading near its 52-week high, with the current price at 99.22% of that peak. These metrics suggest investor optimism surrounding Bally's growth strategy and the potential benefits of the merger with The Queen Casino & Entertainment Inc.
However, it's worth noting that Bally's operates with a significant debt burden, according to an InvestingPro Tip. This factor may be important for investors to consider as the company takes on additional assets and operations through the merger.
For readers interested in a more comprehensive analysis, InvestingPro offers 11 additional tips for Bally's Corporation, providing a deeper dive into the company's financial health and market position.
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