Zeal Network has rejected the offer made today by lottoland to purchase Zeal’s German business for €60 to €76m, labelling the bid “significantly adequate”
A statement was released this afternoon, Zeal said the deal would strip the company of its “most valuable asset and the basis for future brokerage growth in germany, while leaving zeal and its shareholders with considerable downside risks.”
Dr Helmut Becker, CEO of Zeal, said:” The indicative offer from Lottoland is an attempt to buy or core German assets on the cheap. It does not reflect the value of our German business. At the same time, sale of our core business would leave zeal and its shareholders with all downside risks from pending VAT litigation in germany and with significant costs from restructuring the rest of the business.”
“Our plan to convert Tipp24 into a brokerage business and to combine it with Lotto24 will create a strong platform for future growth and is far superior to the Lottoland proposal.
“The positive preliminary results announced today by Lotto24 further emphasise the attractiveness of the brokerage business model. Lottoland offer therefore confirms our views that their main intention is to disrupt the Lotto24 transaction, driven by their business interests as a competitor,” said Becker.