lottoland disappointed by the value destroying zeal lotto24 deal

lottoland disappointed by the value destroying zeal lotto24 deal

by 18.01.2019 0 comments

The two-week public spat between Lottoland and Zeal Network appears to have come to an end with the news that Zeal shareholders have approved the proposed deal to buy Lotto24.

In a statement, Nigel Birrell, CEO of Lottoland, expressed his disappointment in today’s decision, and has reiterated his opinion that the transaction is ‘value destroying’ for the company.

He said: “We are disappointed with the result of today’s General Meeting. With resolution number two [waiving the requirement on Günther Group to make a takeover offer for Zeal] turning out to be very close with only 51 per cent votes in favour and 49 per cent voting against, we do not believe the outcome provides a clear mandate from the shareholders of Zeal to take the transaction forward.”

“Especially given the fact that without the votes of the Lotto24 shareholders this would not have been approved.”

Birrel emphasised that Lottoland still holds its original reservations about the deal which were expressed in a series of open letters and statements over recent weeks.

“This highlights what we have expressed all along that the Lotto24 shareholders are the only ones that will benefit from this transaction; and that the transaction is value destroying for Zeal shareholders.”

Birrell appeared mildly positive that the matter has now come to an end, and expressed that Lottoland would “continue to look at other M&A opportunities and to consolidate our market leading position in the lotto space.”

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