Zeal Network has rejected a non-binding offer from lottery operator Lottoland for the purchase of its Tipp24 brand as “significantly inadequate”.
An offer of between €60m and €76m was made by Lottoland, but Zeal has stated that the valuation was insufficient for a core German asset.
The sale of Tipp24, Zeal said, would strip the company of its most valuable asset and the basis for future brokerage growth in Germany, while leaving Zeal with “considerable downside risks”.
Dr Helmut Becker, Zeal’s CEO, 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.”
