Sinclair Broadcast Group Divests 7.91M of Bally’s Shares

The leading gaming and entertainment company, Bally’s Corporation, announced it registered to sell some 7.9 million shares on behalf of SBG Gaming LLC, a company that is a wholly-owned subsidiary of Sinclair Broadcast Group Inc. Details regarding the divestment came from a Form S-3 filing with the Securities and Exchange Commission (SEC) dated April 12, 2024.

In the filing, Bally’s informs its investors that it registered to sell some 7,911,724 shares of common stock. The gaming and entertainment company did not disclose the reason for the sale of the 7.9 million shares issued to SBG Gaming.

It confirmed that it is a standard process to register such sales, informing its investors. Additionally, Bally’s outlined in the SEC filing that it is not offering shares of common stock for sale, neither will be profiting from the divestment.

“We are registering the shares of common stock on behalf of the Selling Stockholder, to be offered and sold from time to time, to satisfy certain registration rights that we have granted to the Selling Stockholder. We are not offering any shares of common stock for sale under this prospectus and we will not receive any proceeds from the sales of shares by the Selling Stockholder under this prospectus,“

reads the Form S-3 filing from Bally’s

A Busy Period for Bally’s

Early in March, Standard General, a company with a 23% stake in Bally’s, made an offer to acquire the remaining shares in the company at a price of $15 per share. In light of this proposal, K&F Growth Capital, an asset management firm founded by Dan Fetters and Edward King, addressed its concerns in a letter to Bally’s.

The announcement came at a time when the price of the company’s shares has been declining. Still, K&F Growth wrote that the bid of Standard General was woefully undervalued. Additionally, the company claimed that an acquisition by Standard General may deprive Bally’s stakeholders “to earn into what may be double the offered value per share.”

According to the recent SEC filing, there were 40,246,353 shares of common stock of the company as of March 20, 2024. The announced 7.9 million shares divestment represents nearly 16.4% of the total shares.