Lottoland Australia acquires 7.1% stake in Jumbo Interactive
Lottoland has pounced on listed online lottery ticket seller Jumbo Interactive.
A line of 2.25 million Jumbo Interactive shares changed hands on Wednesday at a 28 per cent premium to the market price.
The trade, representing 7.1 per cent of Jumbo Interactive’s issued equity, was done by Petra Capital.
Lottoland is believed to be the buyer, moving on long-held plans to get into the stock. The stake is expected to be unveiled in a substantial shareholder notice in coming days.
The trade comes at an interesting time for Jumbo Interactive and in the lotteries sector more generally.
The company makes the bulk of its revenue selling lotteries tickets via its online business under agreement with wagering giant Tatts Group. Tatts Group is also in play, while Jumbo Interactive has been seeking to stitch up a long-term agreement with Tatts.
Jumbo Interactive, which bundles together various lotteries draws, including those of Tatts, is an obvious fit for Lottoland given its existing footprint in the market with nearly 2 million customer accounts.
Jumbo Interactive shares were up 13.6 per cent to $2.26 on Thursday.