FDJ makes $2.5bn play for Kindred Group

La Française des Jeux (FDJ) is planning to buy out Kindred Group for a sum total of $2.5bn the Wall Street Journal (WSJ) reported in breaking news on Sunday evening, with the French gambling behemoth making a play for one of its largest European counterparts in the sector. The news was also confirmed by Kindred Group in an update on the company’s website and follows the report by the WSJ.

This, though, is not at all surprising, Kindred Group assured in its official statement, and was in fact aligned with the announcement made during its Q3 interim report in 2023 in which the company confirmed that a strategic review had begun earlier in April the same year. Part of the options explored during the review was the sale of the business to an interested company, and with FDJ, such a party has emerged.

Although not going into too much detail as of right now, Kindred Group said that FDJ was indeed looking to buy out the entire outstanding share capital of the group and assume full control over it. More details have already been released in separate affidavits issued by the company and shared with its investors that Casino Guru News has seen.

Kindred Group has outlined some of the details it deems important at this point as well, intended for shareholders. For one, FDJ has offered to pay SEK 130 in cash for each share in Kindred. This is a premium on the company’s share price which closed trading day on Friday, January 19 at SEK 104.50, or a 24.4% premium.

Kindred Group will have an extended acceptance period to mull the proposal, which will last from February 20, 2024, through November 19, 2024, but may still be postponed or extended should FDJ wish it.

The full offer document will be published on February 19, 2024, Kindred Group added. According to Kindred, FDJ is also going to propose a delisting of Kindred Group’s shares from NASDAQ. FDJ is France’s exclusive offline sports betting operator and lottery provider, and it is also expanding into online gambling activities, including sports gambling.

The potential buyout of Kindred Group would create not just a recognizable name at home, but also leverage the online assets of a company that is well known around the world in the face of Kindred. Notwithstanding any current predicaments Kindred Group may be facing, FDJ seems to think that its money is best spent acquiring the group.

Image credit: Kindred Group