Allied Esports Entertainment has opted to terminate its merger contract with Element Partners, selecting instead a “preferable proposition” from Bally’s Corporation.
The esports and gaming organization, primarily owned by Chinese firm Ourgame International, originally consented to vend its poker-centric enterprise and holdings, encompassing the World Poker Tour (WPT), to Element for $78.3 million (£56.3 million) in January 2021. This transaction included an initial disbursement of $68.3 million, with an additional $10 million due over three years post-finalization. The closure was anticipated for March 30th, contingent on endorsement from Allied’s shareholders.
Nevertheless, Allied obtained an unrequested acquisition overture from Bally’s in March, presenting $100 million. This bid, comprising $90 million in cash, has now been designated a “superior proposal” by Allied, although Element retains an opportunity to counter-propose.
“The Corporation has informed Element that unless, by 5:00 p.m. Pacific Time on March 19, 2021, both entities have commenced discussions regarding an alteration to their pending stock acquisition agreement such that the Bally’s Amended Proposal would cease to represent a Superior Proposal, the Corporation intends to dissolve the Element Stock Purchase Agreement,” Allied stated.
“No certainty can be provided that the Corporation will execute a definitive accord with Bally’s or finalize any transaction with Bally’s.”