Allwyn AG, the multinational lottery operator recently named to take over Britain’s National Lottery in 2204, has backed out of a previously announced plan to merge with Cohn Robbins Holding Corp., a special purpose acquisition company (SPAC). Combining with the SPAC would have placed Allwyn on the New York Stock Exchange.
While Allwyn received “strong indications of support during recent meetings with investors,” according to Yogonet, the group notes the period coincided with significant market volatility amid a backdrop of concerns about the prospects for inflation, interest rates and recession.
After consideration, Allwyn and Cohn Robbins have now decided not to proceed with the transaction. Still, Allwyn remains committed to joining the public markets “in due course when conditions are more favorable and to expanding its business into the US.,” said the lottery giant.
“Allwyn was encouraged by the feedback from many leading investors, demonstrating the attractiveness of our business to the investment community,” said Robert Chvátal, Allwyn’s group chief executive officer, according to Yogonet. “However, due to the prolonged and increasing market volatility, we and Cohn Robbins have decided not to proceed with the proposed business combination.
“As demonstrated by our recent results, Allwyn is a highly cash generative business with a strong financial and operational platform to pursue its organic and inorganic growth strategy and to invest in new opportunities. These include the National Lottery in the U.K., where we are set to become the operator in 2024.
“We continue to pursue sustainable and profitable growth and remain excited about the many opportunities we see in the lottery business in Continental Europe, the UK, the United States and elsewhere.”