Zeal issues warning to shareholders over Lotto24 takeover
CEO says multi-million-pound takeover in jeopardy if January general meeting is delayed
The ongoing spat between lottery operator Zeal and minority shareholder Lottoland took another twist today as Zeal confirmed its bid to takeover fellow lottery operator Lotto24 would be terminated if shareholders did not approve the deal in January.
On Monday, Lottoland CEO Nigel Birrell penned an open letter to Zeal shareholders criticising the deal and called for the proposed shareholders meeting, set for 18 January to be delayed.
However, under German law concerning corporate takeovers, if a deal is not approved by shareholders on this date then the deal would be terminated and any potential second bid would be subject to a minimum 12-month cooling-off period.
Addressing the continued speculation, Zeal CEO Dr Helmut Becker said the company remains open to “discussing serious proposals” but they were operating against the clock, adding that “seven weeks have already passed since we first announced our proposal, and we are already holding the meeting towards the end of the regulatory timetable.”
In the wake of the disagreement, European Lottery Betting Association (ELBA) chairperson Lena Patel confirmed to EGR Intel that ELBA will remain unaffected by mounting tensions between the two businesses.
ELBA was formed by Zeal subsidiary myLotto24, alongside Lottoland, in a bid to forge a closer relationship with European regulators and enhance player protection in the vertical.
ELBA chairperson Lena Patel
And Patel has insisted the ELBA will carry on as normal, with myLotto24 continuing to chair the association in spite of any potential negotiations between Zeal and Lottoland.
“MyLotto24 will continue to chair ELBA and our aim is to create more regulated opportunities for lottery betting,” said Patel.
“Zeal is not a member of ELBA and to our understanding, ZEAL is not questioning lottery betting in general, it is just taking a position in Germany.
“ELBA represents the collective political interests of its members and not individual companies,” she added.