After a short delay, Allwyn Entertainment, a Czech lottery juggernaut, is closer to becoming a publicly-traded company. The lottery operator previously inked an agreement with Cohn Robbins Holdings Corp, a special purpose acquisition company (SPAC). Now, both parties shared news about their agreement’s progress.
Allwyn and CRHC Reported Their Progress
According to the agreement, the SPAC will perform a reverse merger with Allwyn, allowing the latter to go public and list on the New York Stock Exchange. Allwyn forecasts that its total enterprise value after the listing will end up at around $9.3 billion.
The two companies now shared news of the progress they’ve made. Allwyn announced that the business registration statement it provided to the US Securities and Exchanges Commission is now effective. In its statement, Allwyn described its plans to merge with CRHC and the value this would create for future investors.
Meanwhile, Cohn Robbins Holdings dropped two notable dates related to the agreement. According to the SPAC, August 15 was selected as a record date, with September 7 as a meeting date. Therefore, the company will gather all investors who checked in on August 15 and ask about their input on the current deal on September 7.
CRHC Wants to Convince Its Shareholders to Approve the Deal
Although Cohn Robbins Holding Corp shareholders may vote against the merger with Allwyn, the SPAC urged them to approve the deal. The company justified its suggestion with Allwyn’s appeal as a global lottery company.
Cohn Robbins Holdings explained that the lottery industry as a whole has characteristics that attract a wide variety of customers. In addition, such businesses tend to be resilient and are increasingly popular in the digital space.
Furthermore, the SPAC noted that Allwyn is not only a part of this industry but an industry leader. Cohn Robbins Holdings pointed out Allwyn’s prominent presence in many European markets, including the United Kingdom where the UKGC picked Allwyn as the next National Lottery operator. If the company successfully receives the license, it would generate additional value for the SPAC’s shareholders.
Speaking of Allwyn’s licensing as a National Lottery operator, the company still faces certain challenges. Camelot, the incumbent National Lottery holder, continues to dispute the decision to crown Allwyn as its successor. Camelot told the UKGC that it risks going bankrupt if it loses its National Lottery license. Because of that, the company did everything in its power to force the UKGC to change its decision. The matter is going to be resolved in court within the next few months.