llied Esports Entertainment announced on March 30th that it has amended its stock purchase agreement with Element Partners to sell all of the outstanding capital stock of each of the legal entities that collectively operate or engage in the Company’s poker-related business and assets. The amendment to the stock purchase agreement increases the overall purchase price from $90.5 million to $105 million.
The Company’s Board of Directors unanimously approved the amendment to the stock purchase agreement. In connection with approval of the amendment, the Company’s Board of Directors, in consultation with its financial and legal advisors, compared the terms of the amended stock purchase agreement to the terms of the proposal received from Bally’s Corporation to acquire the WPT Business for $105 million. After such review, the Board of Directors determined that the Bally’s proposal did not constitute a "Superior Proposal" (as such term is defined in the stock purchase agreement with Element).
The transaction is expected to close in late April 2021, assuming the Company’s stockholders approve the transaction and following required regulatory approvals and other customary closing conditions.
In January, Element Partners completed what it thought was a $78.25 million acquisition for Allied, which includes the WPT as its primary asset. Bally’s triggered a bidding war weeks later by making an unsolicited, larger bid for the WPT of $90 million before Allied’s shareholders could approve Element’s takeover.