A new step forward for FDJ in the acquisition of Kindred
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21 Feb 2024 •
Reading time: 2 minutes In a strategic move that resonates across the European gambling sector, La Française des Jeux (FDJ), the French lottery giant, has taken a new step in its acquisition project of Kindred Group, a Swedish leader in online gambling. The takeover was indeed approved by the Swedish Financial Markets Authority (SFSA), according to documents published on the FDJ website yesterday.
Positively received
In January 2024, FDJ made an offer of approximately 2.5 billion euros for the full takeover of Kindred. This announcement was quickly welcomed by Kindred’s board of directors, which unanimously recommended that its shareholders accept the offer.
On February 19, FDJ published an official document with all the information. FDJ’s proposal, with a purchase price of SEK 130 (11.57 euros) per share, values Kindred at approximately 2.5 billion euros. This valuation represents a premium of 24% compared to the share price.
Strategic acquisition
The shareholders have a reaction period of 39 weeks to respond to the takeover bid. The deadline is therefore on November 19, 2024. During this period, Kindred will implement statutory changes to approve the mandatory purchase of the shares. An extraordinary general meeting is scheduled for March 15, at which 75% of the voting capital will be needed to amend the articles of association and complete the sale.
Shareholders who own 27.9% of Kindred’s shares, including heavyweights Eminence Capital and Corvex Management, have already responded positively. Corvex Management, in particular, the largest shareholder, had long been in favor of the sale of Unibet’s parent company.
FDJ, optimistically, hopes to complete the acquisition by November 28, 2024, pending a smooth transition. The company expects that all necessary approvals will be obtained, which could even accelerate the closing of the agreement. This merger will not only redefine FDJ’s operations, but will also strengthen its position in the market.