AESE accepts revised Element Partners offer over Bally’s proposal

AESE accepts revised Element Partners offer over Bally’s proposal

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Category: Blog, Industry News
Posted by: AffPapa
WPT

Allied Esports Entertainment has announced its entry into a revised stock purchase deal with Element Partners for the sale of all of its capital stock of the legal entities that all currently operate or are involved in its businesses and assets concerning poker.

This transaction does include that World Poker Tour, and it follows on from when the AESE gave up Element’s former proposal of about $78.25 million and instead decided to opt for a $90 million offer that was put forth by Bally’s Corporation.

Despite that, this new agreement is expected to be completed next month and it boosts up the general price $68.25 million at closing and about $10 million worth of guaranteed revenue share payments that will be handed over during the span of three years, up to $90.5 million at closing.

Some additional increases have included a boost in the initial deposit, going from $4 million up to $10 million, as well as a raised termination fee that is payable to Element in case AESE opts for another offer over Element’s one, going from $3 million to $3.45 million. Moreover, the date where AESE and Allied Esports Media or Element are able to put an end to the revised purchase agreement has been extended from March 31st of this year to the 30th of September.

AESE said in a statement on the revised deal:

“Our board of directors unanimously approved the revised stock purchase agreement.”

The firm’s board of directors also consulted with their legal and financial advisors, and went on to compare the conditions of this revised deal to those of the offer they initially got hold of from Bally’s, for the acquisition of the WPT business for $90 million.

Furthermore, the transaction will most likely be closing towards the end of next month, if the company’s shareholders ratify it and it abides by the mandatory regulatory acceptances as well as some other traditional closing terms.