Interactive
Germany – Zeal rejects LottoLand’s offer for Tipp24
By Phil - 11 January 2019
ZEAL Network has slammed an offer from Lottoland Holdings for its German Tipp24 brand as ‘significantly inadequate’ and an ‘attempt to get our German assets on the cheap.’
The cash purchase price offered by Lottoland ranges from E60m to E76m.
Dr Helmut Becker, CEO, ZEAL, said: ‘The indicative offer from Lottoland is an attempt to buy our core German assets on the cheap. It does not reflect the value of our German business. At the same time, a 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’s offer therefore confirms our view that their main intention is to disrupt the Lotto24 transaction, driven by their business interests as a competitor.’
