Kellner investors take stake in lottery operator
PPF Group, founded by the late Czech billionaire, to buy $260m share in Lotto licensee Allwyn
‘The funding deal was a resounding vote of confidence in Allywn’s opportunity to grow’
THE investment group founded by Petr Kellner, the late Czech billionaire, is investing up to $260m (£221m) in the next lottery operator.
PPF Group is prepared to become a major shareholder in Allwyn as it lists in the US this year via a blank cheque firm set up by Donald Trump’s former economic adviser Gary Cohn.
The backstop funding commitment will help get the listing over the line against a difficult backdrop as Russia’s war on Ukraine roils international markets.
Mr Cohn, former president of Goldman Sachs, said the funding deal was a “resounding vote of confidence in Allywn’s opportunity to grow”.
Run by Czech businessman Karel Komárek, Allywn is set to take over the UK’S National Lottery licence in 2024.
It beat incumbent Camelot in the most recent licensing competition after pledging to raise more money for good causes such as funding for Olympians and Paralympians.
In January, Allwyn announced its plans to float on the New York Stock Exchange by merging with Mr Cohn’s special purpose acquisition company, or Spac, Cohn Robbins Holdings Corp (CRHC). Spacs are shell companies that raise money in an initial public offering, which they then use to merge with a private company and take public.
Investors are often granted the right to redeem their money if they do not agree with the final deal the Spac makes, meaning mergers are risky and many fall through. Set up in 2020 by Mr Cohn with former KKR dealmaker Clifton Robbins, CRHC raised $820m for its Allwyn deal, followed by a further $350m investment commitment.
Under the deal announced yesterday, PPF group will provide up to $260m in backstop financing, meaning fewer CRHC investors have to back the final merger deal for it to go ahead. PPF already owns four million CRHC shares and has agreed to purchase up to 26m Allwyn shares at $10 per share. The deal could see it owning up to 4.99pc of the new entity, which is expected to have an enterprise value of around $9.3bn.
CRHC shareholders will get to vote on the Allwyn deal on Sept 7.
PPF’S founder, Petr Kellner, was killed in March 2021 in a helicopter crash during a skiing holiday in Alaska.
The firm’s investment in Allwyn comes as Allwyn reported a 23pc increase in sales for the second quarter of 2022, to €902m (£770m).
The company, which runs lotteries in Austria, Italy and Greece, said the cost of living crisis has had a “limited” impact on demand for its games.
Addressing the war in Ukraine, rising energy prices and inflation in an update on its trading, it said: “The impact on demand for our products has been limited, reflecting their low price point and low average spend per customer, as well as our large number of regular players.”