In a move to enhance investor returns, Bali Corporation has revealed a revised Dutch auction tender offer to repurchase up to 19% of its issued stock. This action follows recent market fluctuations. The firm has established a purchase price range for the buyback between $19.25 and $22 per share, with a maximum expenditure of $190 million.
The tender period will commence on June 24th, 2022, and conclude on July 22nd, 2022, with the possibility of prolongation or premature closure at the company’s discretion. Bali Corporation has also reaffirmed its dedication to distributing capital to shareholders, encompassing a previously declared $350 million capital return initiative.
The ultimate repurchase price will be ascertained upon the offer’s conclusion. It will be fixed within the pre-established range to optimize the quantity of shares reacquired without surpassing the $190 million threshold. All shares tendered in the offer will be acquired at an equivalent price, which could be greater or lesser than the market value during or preceding the offer timeframe.
Bali Corporation plans to fund the buyback utilizing current cash holdings and accessible financial means. The company is positioned to access its revolving credit line if supplementary funds are necessary to fulfill the repurchase and related expenses.
Standard General, holding a significant 22% stake in Bally’s, is keeping their intentions under wraps. A definitive decision on a full acquisition remains elusive. Echoing this sentiment, Bally’s management offers no concrete pronouncements.
Nevertheless, to preclude any unforeseen maneuvers, both parties have pledged to provide a minimum six-day notice should a takeover attempt materialize. Open communication appears paramount in this situation.
Spearheading the financial advisory role is Goldman Sachs, joined by Capital One Securities, Truist Securities, and Wells Fargo Securities in this endeavor.
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