Newly rebranded Allwyn reportedly in merger talks with US-based SPAC
Media reports claim Czech-based operator in early-stage discussions over deal with blank-cheque company
Allwyn, the operator formerly known as Sazka Group, is reportedly in discussions to conduct a reverse merger with US-based SPAC Cohn Robbins Holdings Corp.
Bloomberg suggests the SPAC business, which is led by former Goldman Sachs group executives Gary Cohn and Clifton Robbins, has held early stage talks with Allwyn, but a deal is yet to be finalised.
In order to finance a potential transaction, it is understood Cohn Robbins has begun a private investment in public equity (PIPE) transaction. PIPE deals occur when an institutional or an accredited investor buys stock directly from a public company below market price.
It is understood that a potential transaction will not occur until January at the earliest.
A former Goldman Sachs president and COO, Cohn Robbins executive Gary Cohn served as a chief economic advisor for the Donald Trump administration between 2017 and 2018. His compatriot Clifton Robbins is a veteran of the hedge fund sector, having founded Blue Harbour Group in 2004.
The Cohn Robbins SPAC is one of the largest in the US SPAC market, having raised $828m in an IPO in September 2020.
Allwyn is no stranger to high-profile interest from US-based investment firms, having garnered a €500m investment from perennial gambling investment fund Apollo Global Management in November 2020.
Earlier this month, Sazka Group rebranded to Allwyn as part of a drive to “evolve from a pan-European lottery operator into a global business”.
Allwyn, which operates lotteries in Austria, the Czechia, Greece, Cyprus and Italy, is looking to add the UK to that list as it faces off against incumbent licence holder Camelot, Italian powerhouse Sisal and Northern & Shell in the contest to run the UK’s National Lottery.
Despite the rebrand, Allwyn has committed to a programme to retain its local brands in its various markets, while highlighting the need to “drive continuous strong growth” for the company.
The group runs Sazka Czech (Czech Republic), OPAP (Greece) and Österreich Lotterien (Austria) as country-specific brands, and also operates three lotteries in Italy, along with operations in Cyprus and Greece.
In its latest set of financial results Allwyn reported a 14% year-on-year (YoY) increase in its consolidated gross gaming revenue for Q3 2021, increasing to €876.2m (£744.6m).