Allwyn Entertainment, the privately owned company of Czech billionaire Karel Komarek through his holding KKCG a.s., has announced an all-share deal to merge with OPAP, a major Greek gaming operator, creating a new mega company valued at approximately €16 billion.
While the deal is still subject to customary closing conditions, both companies’ respective boards of directors have already greenlit it, throwing their support behind the company. Allwyn’s merger with OPAP is a strategic move forward, as the company already owns a significant part of OPAP – 51.78% of the total.
Allwyn to have the lead in the merged company
The resulting company will also see Allwyn assume control of 78.5% of the company in terms of economic interest (and 85% of voting rights), with 21.5% going to OPAP. Should the deal go through, the business will still be listed on the Athens Stock Exchange, but there are plans to now take the offer globally and list on the London Stock Exchange as well as the New York Stock Exchange.
"This transaction marks a further milestone in Allwyn’s successful journey. Since being founded 13 years ago, we have grown substantially in terms of business performance, scale, and innovation. With this combination, we will be able to grow further, faster as we deploy group-wide know-how, a unified brand and sponsorship strategy, and in-house technology and content," Allwyn CEO Robert Chvatal said.
OPAP has agreed to rebrand its consumer-facing side as Allwyn, consolidating the trademark name and driving distinction.
This is a major shake-up and consolidation of operations in the lottery vertical, with Allwyn and OPAP creating what is purportedly the second-largest such gaming company. With listing looming, Allwyn will scale up its global dominance significantly.
No big restructuring at the helm of operations
The company previously won one of the longest-fought public tenders, assuming control over the UK National Lottery and displacing Camelot as its operator. As to the economic windfall to shareholders, Allwyn is confident that OPAP’s investors are set to benefit from the new growth opportunities this merger presents.
In terms of operations, the resulting company will be helmed Chvatal, with CFO Kenneth Morton remaining in his current role. Jan Karas, who is OPAP’s CEO, and Pavel Mucha, the company’s CFO, will spearhead OPAP’s business in Greece and Cyprus.
"This exciting combination creates a leading gaming company with strong Greek heritage, as well as a continued presence and listing in Greece. I’m excited about the opportunity for OPAP to deepen our strong existing relationship with Allwyn, driving innovation and additional growth opportunities," added Karas, commenting on the deal.
In September, Allwyn announced plans to buy a $1.6bn stake in PrizePicks.
