By Dhirendra Tripathi
Investing.com – Bally's (NYSE:BALY) shares rose 5% in Wednesday’s trade following the announcement it was in talks for a possible merger with the U.K.’s Gamesys.
Shares of the London-listed Gamesys (LON:GYS) rose18%.
Under the terms, Gamesys shareholders are entitled to receive 1,850 pence in cash for each Gamesys share or take other options.
The cash offer represents a premium of approximately 12.7% to the closing price of Gamesys shares on Tuesday.
Otherwise, Gamesys shareholders can also choose to take 0.343 new Bally’s common shares for each Gamesys share held by them.
Bally’s said in a filing that Gamesys would benefit from its fast-growing land-based and online platform in the U.S., providing market access through operations in key states as the nascent iGaming and sports betting opportunity develops in the U.S.
The U.S.-based casino operator will gain from Gamesys' technology platform, and the combined group would be well positioned to capitalize on the full range of opportunities present both in the U.S. and beyond, Bally’s said in the filing.