European lottery group Allwyn to list on NYSE with blank check firm Cohn Robbins

Author of the article: PRAGUE — Czech businessman Karel Komarek’s European lottery group Allwyn Entertainment will list on the New York Stock Exchange in combination with blank check acquisition company Cohn Robbins Holdings Corp, the companies said on Friday. The transaction will put the combined firm’s enterprise value at approximately $9.3 billion, they said in…
European lottery group Allwyn to list on NYSE with blank check firm Cohn Robbins

Author of the article:

PRAGUE — Czech businessman Karel Komarek’s European lottery group Allwyn Entertainment will list on the New York Stock Exchange in combination with blank check acquisition company Cohn Robbins Holdings Corp, the companies said on Friday.

The transaction will put the combined firm’s enterprise value at approximately $9.3 billion, they said in a statement.

Allwyn, known as Sazka Entertainment until last year, operates lotteries in the Czech Republic, Italy, Austria, Greece and Cyprus. It is also bidding for a lottery license in Britain.

Cohn Robbins (CRHC), set up by Gary Cohn, former economic adviser to U.S. President Donald Trump, and investor Clifton S. Robbins, raised $828 million https://www.reuters.com/article/us-cohn-robbins-hol-ipo-idUSKBN2612NR from investors in September.

The deal will support Allwyn’s growth strategy including potential acquisitions and license tenders in Europe and the United States, Allwyn said, noting it may also use some proceeds to refinance debt.

Komarek is one the wealthiest Czech entrepreneurs, with Forbes putting his net worth at $5.3 billion. His KKCG investment vehicle is focused mainly on the entertainment business but also has activities in gas and oil, information technology and real estate.

“It is an opportune time for Allwyn to take this exciting step. Jurisdictions in Europe and North America should have higher expectations for the innovations their lotteries can deliver,” said Allwyn Chief Executive Robert Chvatal.

Allwyn forecast $810 million in adjusted earnings before interest, tax, depreciation and amortization (EBITDA) from around $1.7 billion in gaming revenue in 2022.

Current Allwyn equity holders will retain approximately 83% of ownership and no new investor will have a stake of more than 5% after the transaction.

CRHC shareholders who do not redeem their shares will be offered 6.6 million shares at a slightly lower enterprise value of $8.7 billion, the statement said.

Investors have committed to purchase over $350 million in equity of the combined company. The deal is expected to close in the second quarter, subject to CRHC’s shareholder and regulatory approvals.

Allwyn’s main operating unit reported consolidated gross gaming revenue of 876 million euros ($992 million) in the third quarter of 2021, up 14% year-on-year, and adjusted consolidated EBITDA up 40% year-on-year to 285.1 million.

Funds managed by Apollo Global Management agreed in 2020 to invest 500 million euros https://www.reuters.com/article/sazka-apollo-global-idUSL8N2HW2BY into Sazka. ($1 = 0.8828 euros)

(Reporting by Jan Lopatka; Editing by Kenneth Maxwell)

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Read More

Total
0
Shares
Leave a Reply

Your email address will not be published.

Related Posts
Copper prices hover near 16-month lows on demand worries
Read More

Copper prices hover near 16-month lows on demand worries

Author of the article: LONDON — Copper prices held near 16-month lows on Wednesday as investors weighed the likelihood of rapid interest rate hikes hurting economic growth and metals demand. Industrial metals have tumbled alongside stock markets as central bankers stepped up talk of action to contain decades-high inflation. Benchmark copper on the London Metal…
Japan’s Nikkei slips below 27,000 level as U.S. futures skid
Read More

Japan’s Nikkei slips below 27,000 level as U.S. futures skid

Author of the article: TOKYO — Japan’s Nikkei edged down on Tuesday, trading below the 27,000 psychological level reclaimed a day earlier, as U.S. futures skidded and investors struggled to find fresh catalysts after the earnings season came to an end. The Nikkei share average had slipped 0.4% to 26,888.18 by 0207 GMT after opening…