Gambling firm Allwyn has abandoned a plan to go public via a merger with blank-check company Cohn Robbins Holdings Corp. The two entities had intended to unite their operations.
Consequently, Allwyn will stay privately owned for now, although the company stressed its dedication to seeking a public listing when the timing is more favorable.
Acknowledging substantial investor enthusiasm for the potential merger, Allwyn attributed the decision to “considerable” market instability, highlighting investor anxieties about price increases, borrowing costs, and the prospect of an economic downturn.
This choice follows commitments of almost $700 million from investors to back the merger.
The lottery company also plans to postpone its entry into the U.S. market until after a successful public offering.
Allwyn Chief Executive Robert Chvatal remarked:
“Allwyn was heartened by the response from numerous prominent investors, illustrating the allure of our enterprise to the investment world.”
“Nevertheless, owing to persistent elevated market volatility, we and Cohn Robbins have opted not to move forward with the proposed business consolidation. We are thankful to the sponsors, Gary Cohn and Cliff Robbins, for their backing over the past year, and we anticipate collaborating with them again down the line.”
In a recent demonstration of their financial strength, Allwyn has showcased a robust base for expanding their operations through both internal development and strategic purchases. The company expresses eagerness to pursue new prospects, including assuming the role of the UK National Lottery operator in 2024. Allwyn emphasizes its dedication to sustainable, lucrative expansion and recognizes substantial promise within the lottery sectors across mainland Europe, the UK, the US, and beyond.”
This declaration comes after Allwyn’s official acquisition of the UK National Lottery permit, following the withdrawal of legal objections from the incumbent operator, Camelot, and its technological partner, IGT.
Gary D. Cohn and Clifton S. Robbins, joint establishers of Cohn Robbins, further stated:
“Since the January announcement of our collaboration with Allwyn, we’ve observed a notable change in market sentiment, encompassing the previous week’s market decline – the most severe single-day drop since June 2020 – and the persistence of such instability this week.
“Karel Komárek and his colleagues at KKCG and Allwyn have cultivated an admirable lottery-centric entertainment enterprise. Nevertheless, given the ongoing market fluctuations and an adverse climate, we have collectively resolved with Allwyn to forgo the transaction. We extend our best wishes for their future endeavors.”
admin