La Francaise des Jeux (FDJ) Pursues Strategic Expansion with Kindred Group Acquisition
French gaming giant La Francaise des Jeux (FDJ.PA) has announced its ambitious bid to acquire Swedish online counterpart Kindred Group (KINDsdb.ST), signaling a strategic move to solidify its position as the second-largest player in Europe’s gaming sector.
FDJ is set to make a compelling offer of 130 Swedish crowns ($12.43) per share for Kindred, amounting to a total enterprise value of 2.6 billion euros ($2.83 billion). This proposal, carrying a substantial 24% premium over Kindred Group’s closing price on January 19, has garnered attention and unanimous support from Kindred’s board.
In response to the acquisition news, Kindred’s shares surged by approximately 17% to 122.6 crowns, underlining the market’s positive reception. Meanwhile stock experienced a 3.9% increase during early trading.
Kindred Group had initiated a strategic review last year, exploring alternatives such as a potential merger or sale. The company attracted interest from multiple parties, making offer stand out as the most attractive outcome for Kindred’s shareholders.
Kindred’s board, recognizing the potential for long-term growth, views FDJ’s offer as reflective of Kindred’s prospects, considering associated risks and uncertainties. The board unanimously recommends the proposed acquisition, emphasizing the recognition of Kindred’s growth potential in the deal’s terms.
FDJ Vision for the Future
Chairwoman and CEO Stephane Pallez expressed enthusiasm for the acquisition, foreseeing a strengthened strategic positioning and significant value creation for shareholders and broader stakeholders. With FDJ’s core expertise in lottery scratch cards in France and the French state holding a 20% stake, the acquisition is expected to enhance earnings and result in a dividend per share accretion of more than 10%.
In summary, FDJ’s move to acquire Kindred Group marks a pivotal step in its strategic expansion, positioning the company for increased prominence in the dynamic European gaming landscape.
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