Benzinga | Mar 16, 2021 09:06AM EDT

Allied Esports Entertainment Board Determines Bally's Corporation Revised Proposal Is 'Superior Proposal' To Element Stock Purchase Agreement

Allied Esports Entertainment, Inc. (NASDAQ:AESE) (the "Company"), a global esports entertainment company, today announced that the Company's Board of Directors, in consultation with its financial and legal advisors, has determined that a revised proposal from Bally's Corporation ("Bally's") constitutes a "Superior Proposal" under the Company's pending stock purchase agreement with Element Partners, LLC ("Element"). Under the terms of Bally's revised proposal, Bally's would acquire all of the equity interests of Club Services, Inc. ("CSI"), an indirect wholly-owned subsidiary of the Company that directly or indirectly owns the Company's poker-related business and assets, including the entities comprising the World Poker Tour(r) ("World Poker Tour," or "WPT(r)"), for consideration totaling $90,000,000 in cash at the closing.

The Company notified Element that it intends to terminate their stock purchase agreement unless, prior to 5:00 p.m. Pacific Time on March 19, 2021, the Company and Element negotiate an amendment to their pending stock purchase agreement such that the Bally's revised proposal no longer constitutes a Superior Proposal.

Prior to making its determination regarding Bally's revised proposal, the Company received a proposal from Bally's to sell the outstanding capital stock of the Company for $100 million, which would include the sale of the World Poker Tour and the Company's esports operations. After discussions, Bally's updated its proposal to acquire only the entities comprising the World Poker Tour to more closely mirror the structure of the Company's pending stock purchase agreement with Element.

There can be no assurance that the Company will enter into a definitive agreement with Bally's or consummate any transaction with Bally's.