Which is the Standard General that enters Intralot

By Matina Harkoftaki

What accompanies the head and one of the founders of the hedge fund Standard General, Soo Kim, is his ability to discover “hidden diamond” companies, as he used to call them, and lead them to further development.

The fund, based in New York and founded in 2007 by Korean-born Soohyung “Soo” Kim and Nicholas Singer, will enter, as announced yesterday, Intralot as a strategic investor, marking a new page for the Greek listed company. . It is a mega-fund with a portfolio of 22 customers, at a time when the value of the assets it manages is estimated at $ 1.823 billion and specializes in investments in casinos, gambling and of media.

Despite the fact that the coronavirus pandemic in the last two years has dealt a severe blow to the financial performance of casinos in the US, effectively “zeroing” their revenue during the closed periods, this did not stop Standard General from a barrage of acquisitions with the vehicle of the casino management company Twin River Worldwide Holdings, which the fund controls with 38%.

Barrage of acquisitions in American casinos

Fund manager Soo Kim saw the light of day in one of the darkest times in the gambling industry. In recent years, Twin River has acquired a significant stake in the casino and entertainment company Bally from Caesars for $ 25 million and has acquired Isle of Capris Casino Kansas City in Missouri and Lady Luck Casino Vicksburg from Eldorado Resorts. in Mississippi, paying a total of $ 230 million in cash for both casinos. In addition, it acquired Eldorado Shreveport Resort & Casino in Louisiana and Mont Bleu Resort Casino & Spa in Nevada for $ 155 million.

It currently operates 14 casinos in 10 US states, a racetrack in Colorado, and has access to sports betting licenses in 16 states. Unlike some hedge funds, Kim has occasionally stated in interviews that Standard General has a long-term approach.

“My company has an activist, long-term investment approach, which includes acquiring significant stakes in listed companies that are ready to face change,” he said in the past, referring to the fund’s core values.

In addition, last February, Standard General made a significant investment in the media industry as it acquired US television giant Tegna in partnership with Apollo for $ 5.4 billion. The deal, which put an end to lengthy discussions between the two sides, brought Standard General to a total of 64 US television stations in 51 different markets, including True Crime, Quest and Twist, while it has an agreement with the network. regional sports television stations Bally’s Sports News.

In addition, last year the fund made a deal worth 2 billion dollars as it acquired the British online gaming company Gamesys. The entry of the fund in Intralot is therefore expected to create new growth prospects for the listed company, while resolving the issue of negative equity while strengthening its position.