British lottery betting brokerage firm, Zeal Network SE, has announced the launch of a voluntary all-share takeover program which would see it acquire compatriot Lotto24 AG along with the German operator’s myLotto24 and Tipp24 subsidiaries.
Behemoth in the making:
The London-headquartered firm utilized an official Monday press launch to announce the proposed deal would find it produce an enlarged digital lottery business with annual billings of approximately $570 million from some ‘diverse international footprint’ of over five million customers.
Shareholder provide:
Zeal comprehensive that its suggested acquisition program would entail it giving investors in Lotto24 AG among its own shares for every 1.6 they maintain its Frankfurt-listed compatriot. Additionally, it said that it had already obtained ‘irrevocable obligations ’ from shareholders holding around 65% of its target’s shareholding they mean to support the planned takeover.
The deal would represent something of a reunion for Zeal Network SE since Lotto24 AG was one of its subsidiaries until being spun off as a personal enterprise in 2012. Further highlighting the homecoming aspect of the planned takeover, the firm was called Tipp24 SE until a 2014 re-branding saw it assume its current designation.
Tipp24 transformation:
Helmut Becker, Chief Executive Officer for Zeal Network SE, proclaimed the successful conclusion of the takeover would also moreover see his firm transform Tipp24 into a locally-licensed online broker by stopping its German secondary lottery company so as to strengthen the local market and increase yields to the country ’s 16 nations and their beneficiaries.
Becker’s announcement read…
“This transaction is good for investors, good for customers and good for the German national states and their lottery beneficiaries. We’ve held initial and constructive conversations with Lotto24 AG and look forward to additional participating with the management to achieve a successful mixture of the companies. We also look forward to a powerful and constructive cooperation with Germany’s state lotteries and encourage all investors to join us on this journey.
International expansion prospects:
Should it finish its planned takeover of Lotto24 AG, Zeal Network SE explained that it plans to relocate its corporate offices to Germany and pursue opportunities in markets as diverse as the United Kingdom, Spain and Norway so as to produce ‘long-term expansion and sustained shareholder and customer value. ’
Price Sequence benefits:
Jonas Mattsson, Chief Financial Officer of Zeal Network AG, said that the proposed takeover would lead to annual cost synergies of around $65 million and create ‘significant value’ for investors while decreasing regulatory risks and ‘associated uncertainties. ’
Mattsson’s announcement read…
“With our shared background, we are confident of achieving a seamless integration of both businesses. We encourage all holders of Lotto24 AG and Zeal Network AG stocks to adhere to the significant shareholders and take part in the deal.
