ZEAL Network’s takeover of Lotto24 AG progresses

ZEAL Network’s takeover of LOTTO24 AG has progressed with the signing of a ‘Business Combination Agreement’ in which the parties have laid out key areas of cooperation.

Lotto24 and ZEAL have agreed cooperation in achieving the synergy effects targeted by both parties, and in gaining the necessary approval of the competent gambling authorities.

Both parties have agreed that Lotto24 should retain its independence after conclusion of the takeover as a subsidiary of ZEAL in a de facto group, and that all relevant arrangements in connection with the cooperation should be made on an arm’s length principle.

In addition, the parties have agreed Petra von Strombeck, chief executive officer and Magnus von Zitzewitz, chief financial officer of LOTTO24 will join the ZEAL executive board as additional members.  In turn Jonas Mattsson, chief financial officer of ZEAL will join LOTTO24’s board of executives.

The deal still has some way to go.  On publication of the offer document by ZEAL, the Executive Board and Supervisory Board of Lotto24 will publish a reasoned opinion on the takeover offer pursuant to Section 27 of the German Securities Acquisition and Takeover Act (Wertpapiererwerbs- und Übernahmegesetz – WpÜG) and at the same time also comment on the financial adequacy of the consideration.

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