ALLIED ESPORTS ENTERTAINMENT DITCHES ELEMENT DEAL IN FAVOUR OF BALLY’S $100M OFFER

Allied Esports Entertainment has signaled it intends to terminate its prior agreement with Element Partners, and accept  a “superior” acquisition offer from casino operator Bally’s Corporation. 

Allied’s current owner, China-based Ourgame International Holdings, had previously agreed to sell its poker business, and related assets including World Poker Tour, to Element Partners for $78.3M USD. The deal was expected to close on 30 March, subject to shareholder approval. 

However, as previously reported, earlier this month US-based casino and racetrack owner Bally’s Corporation jumped in with an unsolicited offer of $100M for the acquisition of Allied Esports Entertainment – subject to the company terminating its agreement with Element. Bally’s proposal included a $10M reverse break-free, and also $3M to cover the termination fee should Allied break the agreement with Element. 

Allied has now issued a statement saying: “The company notified Element that it intends to terminate their stock purchase agreement unless, prior to 5:00pm Pacific Time on 19 March 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.

“There can be no assurance that the company will enter into a definitive agreement with Bally’s or consummate any transaction with Bally’s.”

AYO.NEWS says:

So, it looks like even Bally’s is about to get a piece of the esports pie, though obviously the poker element was probably the major pull for the corporation. Of course, the show isn’t over just yet, and there’s always the possibility Element Partners will counter with an improved offer. Interesting times for the team at Allied Esports Entertainment.