Are Tatts and Lottoland in bidding war for Jumbo Interactive?

An article at ValueWalk seems to think so:

Over the last couple of weeks, a bidding war has emerged.

• On April 24, Lottoland disclosed the acquisition of 3.1 million shares (7%) in the open market.
• On May 12, Jumbo issued 6.6 million shares (15%) and another 3.5 million share options (subject to shareholder approval) to Tatts at a significant discount to the market price that day (AUD 2.37 vs 2.75). In return, Jumbo renewed all reseller agreements with Tatts for five years and, in addition to the cash raised, gained access to a new product (“Set for Life Game”).

I don’t have a problem with Jumbo forming a stronger alliance with Tatts, however Jumbo should at least agree on a price that’s fair to shareholders. Jumbo accounts for 10% of Tatts’ total lottery revenue and is in a strong position to further grow market share given its technical and marketing know-how. In addition, the ongoing Tatts/Tattersalls merger could further help expand and diversify Jumbo’s product portfolio going forward.