Benzinga | Mar 25, 2021 09:03AM EDT

Allied Esports Reports Board Determines Bally's Proposed Offer Is Superior

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 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 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 $105 million 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 29, 2021, the Company and Element negotiate an amendment to their pending stock purchase agreement such that the Bally's proposal no longer constitutes a Superior Proposal.

Prior to making its determination regarding Bally's proposal, the Company received a proposal from Bally's to sell the outstanding capital stock of CSI for $100 million, and Bally's increased its proposed purchase price to $105 million after discussions with the Company.

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