Allied Esports Entertainment, Inc. (Nasdaq: AESE) said a revised proposal from Bally’s Corp. to acquire the World Poker Tour constitutes a “superior proposal” under the company’s pending stock purchase agreement with Element Partners LLC.
Under the revised proposal, Rhode Island-based Bally’s would acquire the World Poker Tour for $90 million in cash at the closing, Allied Esports said in a statement today. Element in January had agreed to pay $78.3 million for the World Poker Tour.
Allied Esports notified Element that it intends to terminate their stock purchase agreement unless, prior to 5 p.m. Pacific time on March 19, 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.
Before its decision regarding Bally’s revised proposal, Allied Esports 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, according to the statement.
Shares in Allied Esports rose 4% to $2.80 a piece for a market cap of $108.8 million following the announcement.