After delaying a proposed merger to the third quarter of the year, Allwyn Entertainment and special purpose acquisition company Cohn Robbins Holdings Corp. have announced that the deal is off. The companies released a joint press statement in which they stated that they have decided against proceeding with the deal.
Allwyn Explains Why the Decision Was Reversed
This comes following news that Allwyn Entertainment, Europe’s largest lottery operator, has been approved to take over the reins for the UK National Lottery after a brief but intense challenge from the incumbent, Camelot.
Admittedly, the deal with Cohn Robbins was a solid one, despite inflation, interest rates, and recessions, concerns that were deliberated by investors, but did not make Allwyn falter at first. In fact, investors were prepared to put down $700 million to carry out this merger with Cohn Robbins.
However, Allwyn and Cohn Robbins continued to deliberate on the transaction which eventually saw the companies reach a mutual agreement against it. This doesn’t mean, however, that Allwyn has given up on the idea of launching on public markets.
In fact, the company has chosen to wait until a time when conditions are more favorable and is currently working on expanding its operations in the United States where it’s bound to meet stiff competition from Scientific Games and Intralot, two companies that have been present in the market for a very long time now.
Allwyn Group CEO Robert Chvátal commented on this latest development and said that there was indeed solid backing for the company’s decision to merge businesses with Cohn. However, Chvátal explained that because of the prolonged and increased market volatility, the partners have decided to not carry on with the combination. He continued:
We are grateful to the firm’s founders, Gary Cohn and Cliff Robbins, for their support over the past year and hope to work with them again in the future.Allwyn Group CEO Robert Chvátal
Lingering Worries about Market Volatility
Chvátal proceeded to praise Allwyn’s most recent performance and results, arguing that the company has a highly cash-generative business and strong financial standing. He added that Allwyn will now be definitely stepping in as the new lottery operator for the UK market, an important milestone as previously explained.
As to SPAC co-founders and co-chairmen Gary D. Cohn and Clifton S. Robbins, the pair said that the company’s partnership with Allwyn was one they cherished but added that investment prudence demanded that they took it easy. In any way, they congratulated Allwyn on the company’s ability to operate a profitable and robust business model.