Allied Esports Entertainment Inc, a global esports entertainment group, has accepted an unsolicited bid from Bally’s Corporation to buy all of the company’s remaining equity shares for a total of $100 million.
The plan will force the firm to terminate its previously negotiated arrangement with Element Partners LLC to sell all of the equity interests of Club Services Inc, its wholly-owned subsidiary that controls poker-related businesses and properties, including the World Poker Tour companies, for $78,250,000 in cash.
Bally’s plan would be evaluated by the company’s Board of Directors in accordance with its duties and commitments under its current arrangement with Element. Although the company and Element continue to negotiate possible changes to the existing terms of their arrangement, there is no guarantee that the company can reach a final agreement with Bally’s or complete any deal.
The acceptance of the deal with Element remains Allied’s recommendation to its stockholders. In accordance with the Element deal, the corporation filed a Consent Solicitation Statement with the SEC and mailed it to its stockholders. The deal with Element is scheduled to close on or around March 30, 2021, if authorised by the stockholders and subject to the fulfilment of other closing conditions.
A copy of Bally’s plan will be included in the company’s current filing on Form 8-K, which will be filed with the Securities and Exchange Commission. On the SEC’s website, http://www.sec.gov, the most recent Form 8-K filing will be available. The resolution should be read by all stockholders.