Browse articles by topic

Allied Esports determines Bally’s bid “superior” to Element agreement


The board of directors of Allied Esports Entertainment has determined that a proposal put forward by Bally’s Corporation to acquire Allied’s poker-related assets is a “superior proposal” to an offer made by Element Partners in January.

Allied’s board has notified Element that it intends to terminate the stock purchase agreement unless, prior to March 29, the companies are able to negotiate an amendment to the pending agreement such that Bally’s proposal no longer constitutes a superior offer.

Bally’s offer currently stands at $105m in cash at the deal’s closing, after discussions with Allied.

Element, a privately-held investment vehicle, originally agreed a deal with Allied in January to acquire its poker-related business and assets, including the entities comprising the World Poker Tour (WPT).

Element agreed to acquire WPT for a total consideration of $78.3m, and the transaction was approved by Allied’s board of directors subject to shareholder and regulatory approval.

In early March, Bally’s went on to submit a proposal to acquire the entire Allied business for $100m in cash, stock, or both, in a deal that would terminate the agreement made with Element.

Terms were then agreed this week on an increased offer from Element, which saw the company put forward a proposal to pay $90.5m upfront for the WPT business and Allied’s other poker assets.

However, the current Bally’s bid, which Allied has now determined to be the “superior proposal”, would see Bally’s acquire only Allied’s poker assets.

Yesterday, Bally’s agreed terms on a merger that would see the business acquire British online gaming operator Gamesys for £2bn ($2.74bn/€2.31bn).

Under the terms of the deal, current Gamesys chief executive Lee Fenton would become chief executive of the combined group, and two further Gamesys directors would join its board.