Allwyn and Cohn Robbins Holdings Corp Call Off SPAC Merger Amidst Market Volatility
The proposed amalgamation of lottery company Allwyn and SPAC Cohn Robbins Holdings Corp has been abandoned. The transaction aimed to make Allwyn a publicly traded entity.
Despite this obstacle, Allwyn maintains its intention to pursue a public listing when market circumstances are more advantageous. The firm attributed the deal’s termination to “intense” market instability and investor apprehensions regarding inflation, interest rate fluctuations, and a possible economic downturn. This marks a significant shift, particularly as investors had previously pledged nearly $700 million to bolster the merger.
Consequently, Allwyn will also postpone its expansion endeavors in the U.S. until after a successful public offering.
Allwyn CEO, Robert Chvatal, expressed continued confidence: “Allwyn garnered very favorable responses from numerous prominent investors, reinforcing our belief that the business holds substantial appeal for the investment community. Nevertheless, owing to persistent market volatility, we and Cohn Robbins have resolved not to proceed with the proposed business consolidation. We extend our gratitude to Gary Cohn and Cliff Robbins for their collaboration over the past year and anticipate collaborating with them again in the future.”
Allwyn boasts a robust history of achievements, grounded in sound fiscal and operational underpinnings. This ideally situates them to execute their expansion strategies, both internally and via tactical mergers, and to capitalize on emerging prospects as they materialize.
“A prime example of such an opportunity is the UK’s National Lottery, where Allwyn is slated to assume the role of operator in 2024. Our dedication to pursuing sustainable and lucrative growth remains steadfast, and we are enthusiastic about the numerous possibilities we perceive within the lottery sector across mainland Europe, the UK, the US, and beyond.”
Allwyn’s designation as the UK National Lottery administrator was recently reinforced when the incumbent operator, Camelot, along with its technology partner, IGT, withdrew their legal contestation of the license grant.
Gary D. Cohn and Clifton S. Robbins, joint establishers of Cohn Robbins, further remarked:
“Our collaboration with Allwyn was unveiled in January. In the interim, we’ve observed a marked change in market sentiment, with the market undergoing its most challenging day since June 2020 just last week, and this decidedly negative trajectory has persisted into the current week.
“Karel Komárek and his colleagues at KKCG and Allwyn have constructed a remarkable lottery-centric entertainment enterprise. Nevertheless, the ongoing instability and adverse market circumstances have prompted us to mutually concur with Allwyn to forgo proceeding with the transaction. We extend our best wishes for their future endeavors.”