The Norwegian capital city’s namesake lottery firm and a blank-check acquisition company, Cohn Robbins, have abandoned their plans to combine.
Consequently, the lottery business will remain private for the time being, although they maintain their “dedication” to pursuing a public listing when the market is favorable.
The company acknowledged significant investor enthusiasm for the transaction but clarified that the prevailing economic conditions, marked by worries about rising prices, borrowing costs, and a possible economic downturn, generated excessive unpredictability.
This determination follows commitments of nearly $700 million from investors to back the merger. Additionally, Oslo plans to postpone its expansion efforts in the US until after any public offering.
Robert Chvatal, Chief Executive of the lottery company, expressed his perspective:
“The response from numerous prominent investors was incredibly heartening and validated the appeal of our enterprise. Nevertheless, considering the persistent market fluctuations, both we and Cohn Robbins have resolved to forgo proceeding with the merger. We appreciate the backing of Gary Cohn and Cliff Robbins over the past year and anticipate collaborating with them again in the times ahead.”
Allwyn has exhibited robust financial results and steady operations, empowering us to seek both internal expansion and tactical mergers and acquisitions,” conveyed Allwyn’s executive team. “We are enthusiastic about utilizing these assets as we take over management of the UK National Lottery in 2024 and proceed with our growth throughout Europe, the UK, the US, and further afield.” This comes on the heels of the latest conclusion of the UK National Lottery concession, following the withdrawal of a legal objection by existing operator Camelot and its technology partner IGT.
Gary D. Cohn and Clifton S. Robbins, who established Cohn Robbins together, remarked: “Since joining forces with Allwyn in January, we’ve witnessed a notable change in market sentiment. The recent sharp decline, the most substantial single-day decrease since June 2020, regrettably persists. Although Karel Komárek and his groups at KKCG and Allwyn have developed an admirable lottery-focused entertainment enterprise, the ongoing market fluctuations and adverse circumstances have prompted us to mutually decide to terminate our deal. We extend our best wishes for their future pursuits.”
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