Allied Esports Entertainment has announced that it will suspend the contract aligned with Element Partners in order to accept a “higher bid” made by Bally’s Corporation.
The eSports and poker company, which is owned by Chinese operator Ourgame International Holdings, agreed in January 2021 to sell its poker business and assets to Element. Element would be willing to purchase the Allied’s World Poker Tour for $ 78.3 million.
Of this total, 68.3 million dollars would be paid in advance, with the other 10 million dollars to be paid over three years. The deal, if approved by Allied shareholders, should be completed by March 30.
Allied accepted the terms, before receiving a proposal for approximately $ 100 million from Bally’s in March. This offer would comprise 90 million dollars in cash at the closing of the agreement, and was considered by Allied as a “superior proposal”. But there is still time for Element to improve its values.
“The company has notified Element that it intends to terminate its contract, unless before 17:00 Pacific time on March 19, 2021, the company and Element negotiate an amendment to their pending share purchase agreement. so that the revised proposal from Bally no longer constitutes a superior proposal ”, appears in the official statement from Allied.
However, the company’s note added: “There is no guarantee that the company will enter into a definitive agreement with Bally’s or consummate any transaction with Bally’s”.
About Allied Esports Entertainment
Nominated for Fast Company’s list of the most innovative companies in the world in 2019, Allied Esports is a world-class sports entertainment company with global reach
Its mission is to connect players, streamers and fans through integrated arenas around the world that serve as game battlegrounds and content generation centers every day.
