Privately-held investment vehicle Element Partners has agreed terms with Allied Esports Entertainment (AESE) on an increased takeover offer for Allied’s poker business, including the World Poker Tour (WPT).
In January, Element and Allied reached an agreement on an offer worth $78.3m for WPT, but earlier this month, Allied revealed Bally’s had submitted a proposal to buy the business for $100m in cash, stock or both.
The Bally’s offer would have seen the previous agreement with Element terminated if it was accepted.
In response, Element has lodged a new proposal, which would see it pay $90.5m up front for the WPT business and Allied’s other poker assets.
The latest offer includes a clause whereby if Allied were to accept a competing acquisition offer, or conclude the sale of the business to another party within 12 months of agreeing terms with Element, it would need to pay a termination fee of $3.5m.
Other clauses include increasing Element’s non-performance fee from $3.0m to $10.0m, while Allied would be able to terminate the agreement if any conditions have not been satisfied by September 30 this year.
AESE said its board “unanimously approved” the new proposal from Element, adding that following a review, it concluded the Bally’s offer did not constitute a “superior proposal” than Element.
Subject to shareholder approval, regulatory approval and other customary closing conditions, AESE expects to complete the sale by the end of April 2021.