FDJ set to make a $2.8 billion offer to acquire online gaming firm Kindred

Paris, January 24, 2024 – French gaming giant La Francaise des Jeux (FDJ.PA) has made a strategic move in the European gaming sector with its announcement of a takeover offer for online peer Kindred Group (KINDsdb.ST). The proposal, unveiled on Monday, involves an offer of 130 Swedish crowns ($12.43) per share, translating to an enterprise value of 2.6 billion euros ($2.83 billion). This represents a significant 24% premium over Kindred Group’s closing price on January 19

.Kindred’s board has given a unanimous recommendation for shareholders to accept FDJ’s offer. In a separate statement, the board expressed confidence in the deal, emphasizing that the terms recognize Kindred’s long-term growth prospects, while also acknowledging the inherent risks and uncertainties associated with realizing those prospects.

FDJ’s ambitious move is set to position the combined entity as the second-largest operator in Europe’s gaming sector. The acquisition is expected to bring about a stronger strategic positioning for FDJ and create substantial value for shareholders and other stakeholders.

FDJ Chairwoman and CEO Stephane Pallez expressed enthusiasm about the proposed acquisition, stating, “I am pleased to announce today the proposed acquisition of Kindred. The combination will result in a stronger strategic positioning and significant value creation for the benefit of our shareholders and broader stakeholder.”

Notably, FDJ, known for running lottery scratchcards in France and backed by a 20% equity stake from the French state, sees the takeover of Kindred Group as a means to boost its earnings. The deal is projected to result in an accretion of more than 10% in FDJ’s dividend per share.

The offer places Kindred Group’s equity market capitalization at around 29.5 billion Swedish crowns ($2.82 billion), signifying a considerable valuation in the gaming landscape. As both companies move forward with this transaction, the gaming industry watches closely to see how this strategic acquisition unfolds in the ever-evolving European gaming sector.($1=10.4567 Swedish crowns, $1 = 0.9173 euros)