Allied Esports Entertainment has announced it will terminate a purchase agreement with Element Partners, in order to accept a “superior proposal” from 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-related business and assets to Element, with Element set to acquire Allied’s World Poker Tour for $78.3m (£56.3m).
A total of $68.3m of that total would be paid upfront, with $10m to be paid over three years after closing. The deal, if approved by Allied shareholders, was expected to close on 30 March.
Allied accepted the offer, before receiving an unsolicited proposal of $100m from Bally’s in March. This offer would comprise $90m in cash in closing, and has now been determined by Allied as a “superior proposal”, but that there is still time for Element to improve its offer.
“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,” a statement from Allied read.
“There can be no assurance that the company will enter into a definitive agreement with Bally’s or consummate any transaction with Bally’s.”