CHICAGO (WBBM NEWSRADIO) -- The chairman of Bally’s is looking to take the company private as it tries to secure a construction loan for its permanent Chicago casino.
The chairman, Soo Kim, founding partner of the New York hedge fund Standard General, is looking to buy out shareholders at $15 a share.
Currently, it’s at $13.88.
The fund already owns about a quarter of the company. Two years ago, Kim tried to take the company private at $38 dollars a share.
Crain’s Business reports that this comes as the company is racing to secure $800 million in financing for its permanent casino in Chicago.
The stock price has fallen over the past two years as debt has grown.
In a letter to Bally's board of directors, Kim said the proposed buyout allows shareholders "to immediately realize a premium price, in cash, for their investment and provides stockholders certainty of value for their shares, especially when viewed against the operational risks inherent in the Company's business and the market risks inherent in remaining a publicly-listed company," according to Crain's.
Bally’s ended 2023 with $163.2 million in cash and $3.6 billion in debt.
The company’s agreement with Chicago requires at least a $1.34 billion investment.
And the permanent casino has to be open by September of 2026.
Listen to our new podcast Looped In: Chicago
Listen to WBBM Newsradio now on Audacy!
Sign up and follow WBBM Newsradio
Facebook | Twitter | Instagram I TikTok