Zeal Network has responded to a call by Lottland chief executive Nigel Birrell for its investors to reject the planned takeover of Lotto24, stating that the proposal “offers the best opportunity for sustainable growth and creates the most value for Zeal's shareholders.”
Birrell this week posted an open online letter to Zeal’s CEO Helmut Becker and CFO Jonas Mattson in which he questioned the economics behind the planned deal and claimed that the Zeal board was acting only in the interests of certain shareholders.
Calling for a halt to an agreement which was passed in December by the German Federal Cartel Office, Birrell produced a list of questions he believes need answering. He also stated that Lottoland would make an alternative offer for certain assets of Zeal Network.
In response, Zeal stated that it believes the rationale behind the comments was to “interfere” with the planned takeover and “spread uncertainty” ahead of the company’s planned Extraordinary General Meeting, scheduled for January 18, at which the deal is set to be put to a vote.
Becker stated today: 'We firmly believe that, of the alternatives we have considered, our proposal to reunite Zeal and Lotto24 has the strongest strategic rationale, offers the best opportunity for sustainable growth and creates the most value for Zeal's shareholders.
“Strong opposition from a competing secondary lottery operator is clear and compelling evidence that our transaction is the best way forward for our company and our shareholders.”
