Allied Esports Entertainment is ending its stock purchasing arrangement with Element Partners in favour of a “superior proposal” from Bally’s Corporation, according to the group.
The company states that the second plan, which was tabled earlier this month, was determined by its board of directors in consultation with its financial and legal counsel.
World poker tour
Bally’s will buy all of the ownership holdings of Club Services, an indirect wholly-owned entity that directly or indirectly controls the company’s poker-related business and properties, including the companies that make up the World Poker Tour, for $90 million in cash at closing under the terms of the deal.
This comes after private equity company Element Partners proposed a contract that would have invested $68.25 million up front in return for a completely guaranteed market share of 5 percent of WPT-branded tournament entry fees on Element-owned or approved gaming sites, up to a limit of $10 million, payable over three years.
Termination of stock purchases
“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,” Allied Esports Entertainment said in a statement.
The corporation received a plan from Bally’s to acquire the company’s remaining capital shares for $100 million, which would have involved the selling of the World Poker Tour and the company’s esports activities, before announcing a decision on Bally’s updated proposal.
Following consultations, Bally’s revised its plan to buy only the World Poker Tour organisations in order to better align with the arrangement of the company’s pending stock purchasing agreement with Element.
Despite this, Allied Esports Entertainment stresses that it cannot promise that it can reach a final agreement with Bally’s or complete any deal with the business.