Allwyn’s anticipated SPAC merger with Cohn Robbins Holdings Corp is set to be delayed due to the plummet of US stocks and fears of a global recession.
The transaction was expected to be finalised during Q2 of this year, however, it has been put back due to the poor performance of stocks on the New York Stock Exchange.
The Times reports that “the transaction will now not be completed before the third quarter, according to a presentation made to investors.”
In January, the board of Allwyn confirmed media speculation that the company was seeking to merge with CRHC, the SPAC vehicle of former Goldman Sachs COO and President Trump advisor Gary Cohn.
CRHC stated that it had raised cash guarantees of $850m to execute its SPAC merger, setting Allwyn on course for a valuation of over $9bn on the NYSE.
However, due to significant economic headwinds in the wake of several crises, global equity markets have endured months of turbulence since CRHC’s proposal.
In April, the NYSE and Global Nasdaq SP500 fell below $4000, its lowest value since March 2021, following a significant investor sell-off of tech and other high-risk stocks.
KKCG, the investment fund of Czech Billionaire Karel Komárek, the largest shareholder of Allwyn Group, has maintained that the SPAC merger was the intended outcome for its asset, irrespective of economic headwinds.
CRHC has outlined its determination to list Allwyn on the NYSE, as the Pan-European lottery conglomerate’s new home, in which it will pursue becoming the dominant player in the $300 billion global lotteries marketplace.
The firm’s portfolio includes the leading European lottery brands of SAZKA (Czech Rep), OPAP (Greece and Cyprus), Lotteries Austria and Lotto ‘Gioco’ Italia.
In March, Allwyn secured its biggest lottery contract, by winning the UK government’s Fourth National Lottery Competition – which will see it succeed Camelot Group as the operating steward of the National Lottery beginning in 2024.
US ambitions would see deal makers outline that Allwyn would scale its business to win and revitalise North American and emerging market lottery using its best-in-class European operations, technologies and systems.