Global esports entertainment firm Allied Esports Entertainment Inc has received an unsolicited proposal from Bally’s Corporation to acquire all of the outstanding equity interests of the company for a total consideration of $100m.
The proposal would require the company to terminate its previously announced agreement with Element Partners LLC to sell all of the equity interests of Club Services Inc, its wholly-owned subsidiary that owns poker-related business and assets including the entities comprising the World Poker Tour, for consideration totaling $78,250,000.
The company’s Board of Directors, consistent with its duties and obligations under its existing agreement with Element, will evaluate Bally’s proposal in due course. While the company and Element continue to discuss potential updates to the current terms of their agreement, there can be no assurance that the company will enter into a definitive agreement with or consummate any transaction with Bally’s.
Allied continues to recommend to its stockholders the approval of the transaction with Element. The company has filed with the SEC and mailed to its stockholders a Consent Solicitation Statement in connection with the Element transaction. If approved by the stockholders, and subject to satisfaction of other closing conditions, the transaction with Element would be expected to close on or about March 30, 2021.
The company will file a current report on Form 8-K with the Securities and Exchange Commission containing a copy of Bally’s proposal. The current report on Form 8-K will be available on the SEC’s website, http://www.sec.gov. Stockholders are urged to read the proposal.