Zeal Network has announced that a significant condition has been satisfied relating to the completion of its much discussed public takeover of Lotto24.
The purchase, which saw a series exchanges made between Zeal and Lottoland, a shareholder in the former and vocal opponent to the deal, is expected to create a digital lottery group with in excess of than five million combined customers globally.
In its “major milestone” reached in its planned takeover, the Lower Saxony Ministry of the Interior has granted Lotto24 a supplement to its existing brokerage permit, which allows for lottery tickets to be sold via the domains of Tipp24, on behalf of the German state lottery companies
This supplement to the brokerage permit allows for lottery tickets to be brokered via the Tipp24.de and Tipp24.com domains.
In a media release, Zeal explained further details of the deal: “In the context of the deal, and consistent with its renewed strategy to de-risk its business model and focus on locally licensed businesses, Zeal intends to reacquire control of its myLotto24 and Tipp24 subsidiaries, and transform its German secondary lottery business into a locally licensed online brokerage model”.
Helmut Becker, chief executive officer at Zeal, explained: “This is a key building block in our journey to reunite with Lotto24, transform Zeal’s core German business model and accelerate growth in the online lottery market in Germany and beyond.
“It is good news for customers, shareholders and the German Federal States and their lottery beneficiaries. We look forward to working in partnership with Germany’s state lotteries, and thank the authorities and the Gambling Council for their supportive and collaborative approach.
“We encourage Lotto24 shareholders to continue tendering their shares and to join us on this exciting journey.”
The offer document to Lotto24 shareholders was published on 31 January, 2019, with the offer acceptance period ending on 10 April, 2019.