Allied Esports Entertainment Receives $100M Acquisition Proposal

Nasdaq-traded Allied Esports Entertainment received an unsolicited proposal from casino and racetrack operator Bally’s Corporation to acquire all of the outstanding equity interest of Allied Esports for $100M USD. Bally’s proposal competes with Allied Esports agreement with Element Partners to sell all of the equity interests of Club Services, an indirect wholly-owned subsidiary of Allied Esports that directly or indirectly owns the company’s poker-related business and assets, including the entities comprising the World Poker Tour, for $78.25M.

Bally’s Corporation’s proposal includes a $10M reverse break-fee it would pay to Allied Esports if they enter into an agreement with the company and the proposal is not completed due to a failure on Bally’s part. It also mentions that Bally’s would fund an additional $3M to cover the termination fee of Allied Esports’ stock purchase agreement with Element Partners.

Allied Esports’s board of directors announced that it will evaluate Bally’s proposal, while it continues to discuss potential updates to the current terms of its agreement with Element Partners. The board also announced that it continues to recommend its stockholders to approve the transaction with Element Partners.

Source: Read Full Article