Allwyn Cancels SPAC Merger with Cohn Robbins Due to Market Volatility
The proposed amalgamation of lottery firm Allwyn and SPAC Cohn Robbins has been abandoned.
Consequently, Allwyn will remain privately held for the time being, although the company reiterated its intention to pursue a public listing in the future. They ascribed the cancellation to the prevailing economic conditions, pointing to instability and apprehensions regarding inflation, interest rates, and the potential for an economic downturn as contributing factors, notwithstanding what they characterized as favorable investor backing for the merger.
It is noteworthy that investors had already pledged nearly $700 million to bolster the Allwyn and Cohn Robbins transaction.
Furthermore, the company has indicated it will postpone its expansion endeavors in the U.S. until after a successful public offering.
Allwyn Chief Executive Robert Chvatal remarked:
“While we are heartened by the enthusiasm for and allure of Allwyn’s operations to numerous prominent investors…
“…given the persistent market fluctuations, we and Cohn Robbins have jointly resolved to not move forward with the contemplated business combination. We express our gratitude to Gary Cohn and Cliff Robbins for their collaboration over the past year as sponsors and anticipate collaborating with them again down the line.”
As demonstrated by their latest achievements, Allwyn possesses a remarkable ability to generate revenue. Their solid financial standing empowers them to expand both internally and through acquisitions. This approach enables investments in promising ventures, such as their forthcoming position as the UK National Lottery’s operator, commencing in 2024. They are dedicated to sustainable, lucrative expansion and hold immense enthusiasm for the vast potential they perceive within the lottery sector across mainland Europe, the UK, the US, and beyond.
This assertive declaration follows Allwyn’s formal affirmation as the UK National Lottery’s subsequent manager, concluding a legal dispute with the former holder, Camelot, and its technological partner, IGT.
Nevertheless, not all developments are favorable. Gary D. Cohn and Clifton S. Robbins, who established Cohn Robbins together, issued a statement concerning their intended business amalgamation with Allwyn:
“Our collaboration with Allwyn, unveiled in January, has regrettably coincided with a substantial decline in market sentiment. Just recently, the market witnessed its most challenging day since June 2020, and this negative trajectory has persisted.
“Karel Komárek and his groups at KKCG and Allwyn have constructed an admirable lottery-centric entertainment enterprise, and we have been profoundly impressed by their accomplishments. However, the prevailing instability and adverse market circumstances have led us to a shared decision with Allwyn to postpone the transaction presently. We extend our best wishes for their future endeavors.”