Following its decision on a business combination deal, Cohn Robbins Holdings Corp. (NYSE: CRHC) stock was up 7.74 percent at $9.88 in after-hours trading. CRHC stock closed regular session at $9.17, decreasing -0.33% or $0.03.
How did that business combination work out?
The Cohn Robbins (CRHC), a special purpose acquisition company, and Allwyn AG, a leading multinational lottery operator, announced that their proposed business combination will not come to fruition.
- A number of investors expressed strong support for Allwyn, Europe’s largest lottery operator, during recent meetings, but market volatility coincided with concerns about inflation, interest rates, and recession during the marketing period.
- However, investors offered nearly $700 million in support for the merger with Cohn Robbins despite this.
- CRHC and Allwyn have decided not to proceed with the deal.
- Allwyn remains committed to expanding its US business in due course and joining the public markets when conditions are more conducive.
- Several leading investors provided feedback to Allwyn management, demonstrating its business’s attractiveness to investors.
- The proposed business combination has been canceled by Allwyn and Cohn Robbins due to the prolonged and increasing volatility of the market.
- A high cash-generating business with a solid financial and operational platform, Allwyn is able to pursue its inorganic and organic growth strategy while investing in new business opportunities, as demonstrated by its recent results.
- The company is set to become the operator of the UK National Lottery in 2024.
- The company will stay focused on sustainable and profitable growth and remains excited about the opportunities in Continental Europe, the United Kingdom, the United States, and other parts of the world.
- After CTHC announced its partnership with Allwyn in January, the market psychology has taken a sharp turn for the worse, and just last week was the market’s worst day since June 2020.
Why did the CRHC make that decision?
Allwyn and Cohn Robbins (CRHC) have decided not to complete the transaction due to persistently volatile and negative market conditions. The Board of Directors of CRHC will decide in due course whether CRHC needs to seek an alternative business combination. Shareholders of CRHC approved on September 7, 2022, an initial extension to December 11, 2022, for Cohn Robbins.