Allied Esports Entertainment has opted to abandon its acquisition contract with Element Partners and will instead pursue a “better proposition” from Bally’s Corporation.
The esports and card game organization, primarily owned by Chinese firm Ourgame International, originally consented to vend its poker-centric business and holdings to Element in January 2021 for a sum of $78.3 million (£56.3 million). This arrangement would have given Element ownership of Allied’s World Poker Tour.
Of this total, $68.3 million would have been paid initially, with the balance of $10 million disbursed over three years after the deal’s finalization. Pending endorsement from Allied’s shareholders, this transaction was projected to conclude on March 30.
Nevertheless, Allied received an unrequested $100 million bid from Bally’s in March, encompassing $90 million in cash. Allied now deems this a “superior proposition,” although Element retains the opportunity to enhance its offer.
“The Company has informed Element that unless, by 5:00 p.m. Pacific Time on March 19, 2021, the Company and Element have commenced negotiations regarding their pending stock purchase agreement such that the Bally’s revised proposal is no longer considered a superior proposal, the Company plans to terminate the stock purchase agreement with Element,” Allied stated.
“There is no guarantee that the Company will enter into a definitive agreement with Bally’s or finalize any transaction with Bally’s.”
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