The Allied Esports Entertainment saga shows no signs of stopping, with Element Partners raising its deal and outbidding Bally’s Corporation once more.
After Bally’s returned with a new offer, AESE announced last week that it had agreed a revised stock agreement with Element Partners to Include WPT.
Stock purchasing arrangement
However, the company has since announced that it has changed its stock purchasing arrangement with Element Partners, adding yet another wrinkle to the unfolding saga.
This refers to the disposition of the entire remaining capital stock of any of the legal entities that manage or participate in the company’s poker-related activity and properties jointly.
Average WPT buying price increases
The average buying price of the World Poker Tour has been increased from $90.5 million to $105 million as a result of the update of the stock purchase agreement.
According to Element Partners, the AESE board of directors “unanimously approved the amendment to the stock purchase agreement.”
Revised stock purchase agreement
The board compared the provisions of the revised stock purchase agreement to the terms of the proposal obtained from Bally’s Corporation to buy the WPT company for $105 million, in conjunction with its financial and legal counsel.
Following the analysis, both parties conclude that the Bally’s proposal did not meet the definition of a “superior proposal” as specified in the stock purchasing agreement with Element.
The deal is scheduled to close in late April 2021, provided the company’s stockholders support it and all other requisite regulatory approvals and closing conditions are met.