Allied Esports Entertainment, a global esports entertainment company, confirmed that it received an unsolicited proposal from Bally’s Corporation to acquire all of the outstanding equity interests of the Company for a total consideration of $100 million, payable, at the Company’s option, in cash, Bally’s capital stock, or a combination of both.
The Bally’s proposal would require the Company to terminate its previously announced agreement with Element to sell 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®, for consideration totaling $78,250,000.
The Company’s Board of Directors, consistent with its duties and the Company’s obligations under its existing agreement with Element, will evaluate Bally’s proposal in due course. The Company and Element continue to discuss potential updates to the current terms of their agreement.
"There can be no assurance that the Company will enter into a definitive agreement with Bally’s or consummate any transaction with Bally’s," stated the company on Friday.
At this time, the Company’s Board of Directors continues to recommend to the Company’s stockholders the approval of the transaction with Element. The Company has filed with the SEC and mailed to its stockholders a Consent Solicitation Statement in connection with the Element transaction. If approved by the Company’s stockholders, and subject to satisfaction of other closing conditions, the transaction with Element would be expected to close on or about March 30, 2021.
The Company will file a current report on Form 8-K with the Securities and Exchange Commission (the “SEC”) containing a copy of Bally’s proposal. The current report on Form 8-K will be available on the SEC’s website, https://www.sec.gov.