Through the proposed acquisition of Kindred, FDJ aims to create a European gaming champion with an improved financial profile and to expand its international presence to account for about 20% of its gross gaming revenue (GGR) compared to the present 6%
Online betting and gaming firm Kindred to be acquired by FDJ in €2.6bn deal. (Credit: Mustagnom/Wikipedia.org)
France-based La Française des Jeux (FDJ) has filed an all-cash tender offer to take full ownership of online betting and gaming company Kindred in a deal with an enterprise value of €2.6bn.
According to the terms of the offer, Kindred’s shareholders will receive a price of SEK130 ($12.48) per share.
The offer price represents a 24% premium over Kindred’s closing price on 19 January 2024 and 35% over the weighted average price for the last 30 trading days.
Listed on Nasdaq Stockholm, Kindred operates several brands including Unibet. The other brands are 32Red, Bingo.com, Casinohuone, Kolikkopelit, Maria Casino, Highroller, Vlad Cazino and Ottokasino.
The firm offers a diversified online offering including sports and horse-race betting, poker and casinos.
Kindred CEO Nils Andén said: “I believe that combining with FDJ, Kindred can accelerate the delivery of long-term strategic projects, continue to grow in core markets, and provide a trusted source of entertainment to customers.
“It will also speed up our path towards 100% locally regulated revenue.”
Through the proposed acquisition of Kindred, FDJ aims to create a European gaming champion with an improved financial profile.
Besides, the deal will enable FDJ to expand its international presence to account for about 20% of its gross gaming revenue (GGR) compared to the present 6%.
The combined entity will only operate in markets that are locally regulated or on the path of becoming regulated, stated FDJ.
FDJ plans to fund the acquisition by utilising a large part of its available cash and through a bridge loan with French banks.
The French betting and gaming operator has also secured an irrevocable agreement from five Kindred shareholders to tender their shares. This represents 27.9% of the capital.
According to FDJ, the tender offer will be launched on 19 February 2024 for a maximum period of nine months.
The completion of the tender offer is subject to regulatory authorisations and to FDJ’s acquisition of at least 90% of Kindred’s capital.
FDJ Group chairwoman and CEO Stéphane Pallez said: “I am pleased to announce today the proposed acquisition of Kindred.
“Fully aligned with our strategy, it will give the Group a diversified and balanced profile, based on several pillars: the monopoly activities, mainly the lottery, on our French historical market and, since November, in Ireland, with the acquisition of the Irish lottery operator PLI; and online sports betting and gaming activities open to competition in Europe.”