Bally to Spin Off Hotels, Casinos
Bally Manufacturing Corp. said late Thursday that it will spin off its hotel-casino group, which accounts for nearly half of its revenue, as a separate publicly-held company but will retain up to a 15% stake in the business.
Bally stockholders will receive, tax-free, one share of common stock in the hotel-casino business for each share of Bally Manufacturing they own on the effective date of the spinoff, the Chicago-based company said in a statement.
Bally will retain all components of its leisure and manufacturing businesses, which consist of Bally’s Health & Tennis Corp., a chain of 250 fitness centers; the Aladdin’s Castle chain of more than 300 video arcades; the Scientific Games division, which manufactures lottery equipment; Life Fitness Inc., a maker of exercise equipment, and a slot-machine manufacturing division.
The hotel-casino company, which does not yet have a name, will operate two Atlantic City casino hotels, Bally’s Park Place and Bally’s Grand; and two casino hotels in Nevada, Bally’s Las Vegas and Bally’s Reno, said spokesman William Peltier.
The hotel-casino business accounted for about half of Bally’s $1.73 billion in revenue last year, with health and fitness and the gaming equipment divisions accounting for roughly 43%.
