The multinational lottery operator Allwyn Entertainment, which belongs to the KKCG group of Czech billionaire Karel Komarek, will become a publicly-listed company on the New York Stock Exchange (NYSE) in partnership with NYSE- listed Cohn Robbins Holdings Corp (CRHC), the company announced in its press release. The value of the merged company will reach approximately $9.3bn.
“Listing on the NYSE is the next chapter in Allwyn’s history and track record of shared success benefitting players, communities, governments and investors. We forecast the business delivering attractive revenue, profit and cash flow growth, creating attractive long-term value for investors,” Karel Komarek, Chairman of the Board of Allwyn and Founder of KKCG Investment Group, Allwyn’s majority owner, stated.
Allwyn, the new group-wide brand for SAZKA Entertainment, will be able to expand to more markets, while enhancing capital access to fund opportunities for accelerated growth after going public, said Komarek.
“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. With consumers expecting the option to experience and pay for entertainment online, Allwyn is building stronger, more individualised and more valuable relationships with our customers,” Robert Chvatal, Chief Executive Officer of Allwyn, said.
Cyrrus analyst Tomas Pfeiler said the proposed value of the partnership is reasonable and does not deviate significantly from the industry norm. They generate decent profits, and therefore, should not be significantly affected by the current wave of stock market sell-offs, which mainly affects young technology companies.
Allwyn's current shareholders are expected to hold approximately 83% of the combined company following the merger. No new shareholder should own more than 5 percent of the business immediately after the transaction.
The transaction has already been unanimously approved by the boards of directors of both Allwyn and CRHC, but is still subject to confirmation by CRHC shareholders and regulatory authorities. It is expected to close in 2Q22.
The company expects adjusted Ebitda for the current year to stand approximately at $810mn. Net wagering revenue is estimated to be approximately $1.7bn.