Bally Looks to Buy Back Stock Through Dutch Auction Plan

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Game publisher - Bally was entering a Friday that has halved this year. Therefore, the publisher of this game has made a decision to solve the difficulties being faced with the stock market.

1 business day ago Bally's announced that it has commenced a modified 'Dutch auction' through which it intends to purchase up to 19% of its issued and outstanding shares. me. his action.

Bally's directors determined that the company should purchase $190 million worth of shares, with each share being valued at between $19.25 and $22. This is a price range that cannot be higher and must not be lower than the specified number. This move was formed because the stock market in the world had many negative movements.

What Does Dutch Auction Mean?

The Dutch auction method is completely different from the open market share repurchase method. This type of auction is also known as a descending auction in English as Dutch Auction.

This is a form of public auction in which the price of the sale is determined after considering all the selling prices, the sale price is chosen as the highest price at which the total volume offered for sale can be sold. In this form of auction, investors set a bid price and how much they are willing to buy.

A Dutch auction is a type of reverse auction, or the price of an item is lowered until it equals a bid. The first bid traded is the winning bid, assuming that the price is higher than the reserve price. This is in contrast to traditional forms where prices rise as bidders compete.

This method was used in 2021, Red Rock Resorts (NASDAQ:RRR) meaningfully trimmed its shares outstanding count through a Dutch auction.

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Appointed time for Bally's Auction

This decision will take effect from June 24, 2022, and is scheduled to end on July 22, 2022.

Following this auction, the company announced that it now expects to return capital to shareholders in the future, including through a previously announced $350 million return program.

After this auction period expires, the stock prices will be included in the specified price range, the buyer is only allowed to buy the maximum number of common shares that the aggregate purchase price does not exceed $190 million.

As expected by Bally, all shares purchased in the offering will be purchased at the same price; This price may be higher or lower than the market price during or before the offer period.

Currently, Bally's total shares are owned by Standard General with 22% of Bally's total outstanding shares. However, up to now, Standard General has not decided whether to buy the company's shares or not. Standard General and Bally executives and directors said they would notify Bally at least six days in advance of their intention to bid for shares in the offering to ensure transparency in the sale.