Allwyn SPAC merger faces delay as market forces come into play
Czech operator’s $9.3bn deal with Cohn Robbins Holdings Corp. set to conclude in Q3 as original Q2 timeline looks unlikely
Allwyn’s plans to become a publicly listed company via a reverse merger with a SPAC, Cohn Robbins Holdings Corp., have been hit by a delay.
When the $9.3bn deal was announced in January 2022, Allwyn hoped to float on the New York Stock Exchange some time in Q2.
However, reports suggest the transaction is set to close in the third quarter, delaying the listing on the newly merged entity.
In a recent presentation to shareholders, Allwyn reportedly acknowledged a “significant drop in the market” which had led to its securities facing “downward pressures”.
In a statement, KKCG Group, Allwyn’s parent company, said the timetable of its listing depended on standard regulatory checks by the US authorities.
A KKCG spokesperson said: “The timetable of the SPAC merger process is dependent on the US SEC review of our registration statement.
“There has been no change from our side at all. We are working with the SEC to finalise our registration statement, and we now anticipate closing in Q3,” the spokesperson added.
Cohn Robbins Holdings Corp. was co-founded by former Goldman Sachs group executives Gary D. Cohn and Clifton S. Robbins and holds approximately $828m of cash in trust.
Following the transaction, Allwyn expects to retain around 83% of shares in the company, with no new shareholder owning a stake of more than 5%.
Following the closure of the deal, Robbins will join the Allwyn board of directors, while Cohn will serve as a special advisor to the chair.
Elsewhere, Allwyn is currently embroiled in a legal battle relating to the awarding of the fourth UK National Lottery licence to the operator.
The incumbent licence holder, Camelot, has launched legal proceedings against the UK Gambling Commission over its decision to award Allwyn the 10-year licence, ending Camelot’s involvement since the outset in 1994.
Camelot’s tech partner, IGT, and fellow licence contender Northern & Shell have also submitted a legal challenge over the regulator’s decision.
The legal battle could see the delay of the licence transition, with Allwyn set to take over the running of the National Lottery in 2024.