Frankfurt-listed lottery provider Zeal Network has begun the process for its all-share voluntary takeover of German online lottery brokerage Lotto24.

The company has published an offer document for its takeover bid following approval by the German Federal Financial Supervisory Authority, and will exchange one new Zeal share for 1.604 Lotto24 shares.

Zeal has already secured irrevocable commitments to accept the offer from major shareholders representing approximately 65 per cent of Lotto24 shares, including Günther Group, Working Capital and Zeal co-founder and former CEO Jens Schumann.

The acceptance period for the offer ends at midnight (CET) on 10 April, with Zeal having received necessary shareholder approval to fund the proposed deal last week.

"We are fully on track to reunite Zeal and Lotto24,” said Zeal CEO Helmut Becker. “The conversion of Tipp24 to the lottery brokerage model and our combination with Lotto24 will create a superior platform for sustainable and accelerated growth in Germany and beyond.

“Lotto24 has successfully grown its market share in the German online lottery market to 34 per cent in 2018. Together, we will build on this position, and our combined scale and technology capability to further expand our joint business.

“We are convinced that the transaction will create significant value for shareholders of both companies, customers, and the German federal states and their lottery beneficiaries. With our offer, we are inviting Lotto24 shareholders to join us on this exciting journey and become part of our combined success story,” said Becker.

Shares in Zeal Network SE (FRA:TIM) gained 1.37 per cent to €22.25 per share in Frankfurt Friday morning.

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