Allied Esports Entertainment puts an end to Element agreement in favour of Bally’s
Allied Esports Entertainment will be putting an end to its deal to purchase stocks with Element Partners. The reason behind this sudden decision was said to be a better proposal from Bally’s Corporation. The company also noted that its board consulted with its advisors, both financial and legal, and has decided to go for the Bally’s proposal made a few weeks ago.
The Bally’s offer stated that the company would be obtaining the entirety of the equity interests of Club Services, which is a subsidiary owning the group’s poker business and assets such as World Poker Tour, for a total amount of $90 million in cash. Element Partners came forward to mention that their deal would have had about $68 million paid from the start, as well as a guaranteed revenue share worth 5% of WPT tournament entry fees on all its owned gaming platforms for a limit of $10 million.
In a statement concerning the choice to opt for the Bally’s deal, the company said:
“The company notified Element that it intends to terminate their stock purchase agreement unless, prior to 5:00pm Pacific Time on March 19, 2021, the company and Element negotiate an amendment to their pending stock purchase agreement, such that the Bally’s revised proposal no longer constitutes a superior proposal.”
Before it even decided upon Bally’s revised proposal, Allied Esports Entertainment had acquired a proposal from Bally’s for the selling of the company’s capital stock for an amount of $100 million, including the sale of WPT and all esports operations. After lengthy discourses, Bally’s decided to alter its proposal to solely obtain the entities that make up WPT in order to reflect the company’s stock purchase deal with Element.