Benzinga | Mar 5, 2021 12:56PM EST

Allied Esports Shares Are Trading Lower On Bally Acquisition Proposal For $100M

* Gaming company Bally's Corporation sent an unsolicited proposal to acquire the outstanding equity interests of global esports entertainment company Allied Esports Entertainment Inc (NASDAQ: AESE) for $100 million in cash, Bally's, stock, or a combination of both.

* Bally's proposal would require termination of Allied's previous agreement with Element Partners to sell the equity interests of subsidiary Club Services, which directly or indirectly owns the poker-related business and assets, including the entities comprising the World Poker for $78.25 million.

* Allied's board will appraise Bally's proposal in due course. The company and Element continue to discuss possible updates to the existing terms of their agreement.

* Presently, Allied's board continues to recommend the stockholders regarding the approval of the transaction with Element.

* Price action: AESE shares are down 20.5% at $2.60 on the last check Friday.