FDJ Launches Bid for Kindred Group Valued at €2.49bn
Date: 2024-02-20 Author: Dima Zakharov Categories: EVENTS
FDJ’s Bid for Kindred Group
French gaming and lottery company La Française des Jeux (FDJ) has taken a significant step in expanding its presence in the European gaming market by initiating a public tender offer to acquire Kindred Group. The offer, valued at €2.49bn, marks a strategic move towards creating a stronger foothold in the gaming sector.
Confirmation of Offer
The public tender document, published by FDJ, confirms the offer of SEK130 in cash for each Swedish Depository Receipt (SDR) in Kindred. This represents a 24.4% premium over the closing price of Kindred shares on 19 January. The acceptance period for the offer is set to begin on 20 February and will run until 19 November.
Strategic Implications
FDJ aims to position itself as a prominent player in the European gaming industry through this acquisition. The combined entity is expected to achieve enhanced revenue and earnings growth, establishing a formidable "European gaming champion."
Analyst Perspective
Analysts view FDJ’s bid for Kindred as a strategic shift, opening doors to new markets and product offerings, particularly in the lucrative iGaming sector. The deal signifies a significant expansion beyond FDJ's traditional monopoly and is seen as a transformative step for the company's growth strategy.
Financial Performance
FDJ and Kindred both reported positive financial results for 2023. FDJ recorded a 6.5% increase in revenue, reaching €2.62bn, while Kindred reported a 13.3% rise in revenue to £1.21bn. Despite challenges such as increased costs, both companies remain optimistic about their growth trajectories moving forward.
