The gaming firm, Allwyn, has withdrawn its intentions to debut on the stock market via a combination with the blank-check company, Cohn Robbins Holdings Corp.
Therefore, Allwyn will remain a privately owned entity for the time being. Nevertheless, the corporation maintains its dedication to seeking a public listing when the circumstances are favorable.
Although there was substantial investor enthusiasm for the prospective merger, Allwyn clarified that the proposition coincided with a phase of considerable market instability. Investors are apprehensive about soaring prices, escalating borrowing costs, and the potential for an economic downturn.
Originally, investors had pledged nearly $700 million to finance the Allwyn-Cohn Robbins union, but the market dynamics have undeniably altered the situation.
Due to the prevailing financial atmosphere, Allwyn is also postponing its growth strategies in the United States. The enterprise will reexamine these initiatives once it accomplishes its objective of becoming publicly traded.
Allwyn Chief Executive Robert Chvátal remarked on the choice:
“Allwyn obtained very encouraging responses from numerous significant investors, which provides us with immense assurance that our enterprise possesses the necessary qualities to attract the investment community.
“However, considering the ongoing and escalating fluctuations in the financial markets, both we and Cohn Robbins have resolved not to proceed with the suggested business amalgamation. We wish to express our gratitude to the company’s founders, Gary Cohn and Cliff Robbins, for their backing throughout the past year, and we anticipate collaborating with them once more in the future.”
Allwyn has exhibited robust revenue generation and a firm fiscal and operational base, enabling them to seek both internal and merger-driven expansion and allocate resources to emerging prospects, as illustrated by their latest achievements.
A prime example is the UK National Lottery, which they will commence managing in 2024. They express enthusiasm for the prospects within the lottery industry across mainland Europe, the UK, the US, and beyond, and they remain committed to pursuing sustainable and lucrative growth.
Allwyn was lately granted the previously mentioned UK lottery permit after Camelot, the existing operator, along with its technology partner, IGT, withdrew their legal contest to the license allocation.
Gary D. Cohn and Clifton S. Robbins, Co-Establishers of Cohn Robbins, further stated:
“Since declaring our collaboration with Allwyn in January, we have observed a distinct negative shift in market sentiment, with the past week marking the most significant downward week for the market since June 2020, and these dramatic and unfavorable patterns have persisted this week.
“Karel Komárek and his group at KKCG and Allwyn have much to take pride in with the lottery-focused entertainment enterprise they are developing. However, the ongoing market instability and the present adverse market circumstances have resulted in our joint choice with Allwyn to not move forward with the deal at this juncture. We extend our best wishes for their future endeavors.”