Intense activity has been observed in the "camp" of Bally's Intralot, as well as Intracom, over the past 48 hours, with reports suggesting that the announcement of mega deals is now only a matter of time. According to London-based banking and brokerage sources, talks between the leading executives of Bally's and the bondholder creditors of Evoke have reached their final stage. The same sources state that the goal is to finalize the deal by June 28, 2025, with the prospect of it being officially presented at the General Meeting of Bally's/INLOT shareholders. Meanwhile, broader business processes are underway surrounding the Intracom group, following the agreement to sell Europa Insurance to Credia. These developments, according to the same information, may further strengthen the company's valuation, which is currently trading at levels lower than its estimated net asset value.
The structure of the deal
The emerging deal, according to the same information, will have a complex financial structure and include the following key elements: Payment of the consideration to Evoke via Bally's Intralot shares, which will be valued at approximately €1.18, the price at which they are expected to be distributed to creditors and shareholders. Transfer of the existing debt to a Special Purpose Vehicle (SPV), with repayment over a period of approximately 20 years from the future cash flows of the new entity. At the same time, a benchmark interest rate is provided for Evoke’s bondholder creditors, estimated in the 5%–6% range. Determination of a specific valuation price for the Evoke share, which will form the basis for calculating the share exchange for both creditors and shareholders, as well as for the valuation of Bally's/INLOT, which is also placed around €1.18 per share, according to the same sources.
Impact on valuation and financial figures
London sources indicate that the structure of the agreement is considered highly favorable for Bally's/INLOT, as it is estimated that it could lead to a significant strengthening of its financial figures. Specifically, there is talk of a potential surge in EBITDA to the level of €1.1 billion, with a corresponding positive effect on the company's valuation on the Euronext exchange and the Athens Stock Exchange. Under this scenario, the market capitalization could approach €3.5 billion, with the stock price moving toward €1.8, always according to the same estimates.
Impact on Intracom as well
The completion of the agreement is expected, according to the same sources, to positively affect the valuation of Intracom, which maintains a 4.93% stake in Bally's/INLOT. The same sources state that further developments are expected in the coming period, which may significantly reshape the investment narrative for both Bally's/INLOT and Intracom.
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