Allied Esports Entertainment has chosen to terminate its purchase contract with Element Partners, favoring a more attractive proposition from Bally’s Corporation.
The esports and card game organization, financially supported by Chinese provider Ourgame International, had initially consented in January 2021 to divest its poker-centric operations and holdings to Element. This transaction would have resulted in Element obtaining Allied’s World Poker Tour for $78.3 million (£56.3 million).
Element’s strategy involved an initial disbursement of $68.3 million, with the balance of $10 million paid over three years following the deal’s finalization. This acquisition was projected to be concluded on March 30th, contingent upon endorsement from Allied’s stakeholders.
Nevertheless, Bally’s intervened with an unrequested bid of $100 million in March. This proposition, encompassing $90 million in immediate payment upon closure, has been deemed a “superior proposition” by Allied. Element retains the opportunity to present a counter-offer.
In an official declaration, Allied clarified, “The organization has informed Element that unless, by 5:00 p.m. Pacific Time on March 19, 2021, both entities have commenced discussions concerning an alteration to their existing stock purchase contract such that the Bally’s proposal would no longer represent a superior proposal, the company plans to dissolve the Element stock purchase agreement.”
However, they also included a caveat, “There is no guarantee that the company will formalize a definitive agreement with Bally’s or execute any transaction with Ballys.”
