Psychology

European lottery group Allwyn cancels SPAC deal for listing on NYSE

European lottery group Allwyn cancels SPAC deal for listing on NYSE
ADVERTISEMENT

Register now for FREE unlimited access to Reuters.com

Sept. 23 (Reuters) – European lottery group Allwyn Entertainment said Friday it has called off its deal with a blank check company that would have seen its stock listing in New York, citing volatile market conditions.

Allwyn entered into a blank check merger agreement with the company Cohn Robbins Holdings Corp (CRHC.N) in January, bringing the combined company’s enterprise value to approximately $9.3 billion at the time.

ADVERTISEMENT

Investor interest in these blank check firms, known as Special Purpose Acquisition Companies (SPACs), has waned over the past year due to tighter regulations, rising interest rates and a decline in public market valuations.

Register now for FREE unlimited access to Reuters.com

Allwyn’s announcement comes on the same day as the SPAC, backed by private equity firm TPG Inc (TPG.O), decided to wind down its operations, also citing market volatility.

In a statement, Allwyn said it remains committed to listing its shares and expanding its business into the US, but said it will wait for more favorable terms.

Allwyn, until last year known as Sazka Entertainment, operates lotteries in the Czech Republic, Italy, Austria, Greece and Cyprus.

Cohn Robbins, founded by Gary Cohn, former economic adviser to former US President Donald Trump, and investor Clifton Robbins, raised $828 million from investors in September 2020.

In a statement, Gary Cohn and Clifton Robbins noted that their partnership with Allwyn was announced in January, but that “a decidedly negative turn in market psychology” has since been observed.

While praising Allwyn’s leadership, they said, “Nevertheless, continued volatile and adverse market conditions have prompted our mutual decision with Allwyn not to proceed with the completion of the transaction.”

Register now for FREE unlimited access to Reuters.com

Reporting by Rhea Binoy in Bengaluru; Editing by Shailesh Kuber and Leslie Adler

Our Standards: The Thomson Reuters Trust Principles.

ADVERTISEMENT1

Leave a Comment