Esports and gaming organization, Allied Esports Entertainment, has opted to abandon its acquisition agreement with Element Partners in favor of a more “advantageous proposition” from Bally’s Corporation.
A subsidiary of Chinese company Ourgame International Holdings, the esports and card game company had initially consented in January 2021 to vend its poker-centric business and holdings to Element for $78.3 million (£56.3 million), encompassing the World Poker Tour.
An initial payment of $68.3 million was to be rendered, with the balance of $10 million disbursed over a three-year period subsequent to the deal’s finalization, anticipated for March 30th, contingent upon endorsement from Allied’s shareholders.
Prior to receiving an unprompted $100 million buyout bid from Bally’s in March, Allied had already acquiesced to Element’s proposition. Bally’s tender, comprising $90 million in immediate funds, is now deemed by Allied to be the “superior proposition,” though Element retains the opportunity to enhance its offer.
“The Company has apprised Element that unless, by 5:00 p.m. Pacific Time on March 19, 2021, both entities have commenced discussions concerning modifications to their pending stock purchase agreement such that the Bally’s Amended Proposal would cease to represent a Superior Proposal, the Company intends to dissolve the Element Stock Purchase Agreement,” Allied conveyed in a declaration.
“No guarantee can be provided that the Company will formalize a definitive agreement with Bally’s or effectuate any transaction with Bally’s.”
admin