FDJ agrees SEK27.95 billion acquisition of Kindred Group

French lottery and gaming operator La Française des Jeux (FDJ) has made an SEK130 per share bid to acquire Kindred Group.

FDJ said the proposed acquisition of Kindred will establish a European gaming champion with an enhanced financial profile.

“I am pleased to announce today the proposed acquisition of Kindred,” said FDJ chief executive Stéphane Pallez. 

“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.

“Given their respective histories, strategic strengths and core values, FDJ and Kindred are highly complementary, and I will be delighted to welcome Kindred's management team and many talented individuals into the combined Group following this transaction,” added Pallez. 

“The combination will result in a stronger strategic positioning and significant value creation for the benefit of our shareholders and broader stakeholders.”

The proposed acquisition has the unanimous support of Kindred Group’s Board of Directors.

“I’m delighted with today’s transaction announcement between FDJ and Kindred, creating a leading European gaming operator with the financial and strategic capabilities to further expand its global footprint,” said Nils Andén, CEO of Kindred Group.

“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 per cent locally regulated revenue. 

“I’m excited to bring Kindred’s extensive experience and know-how into FDJ’s organisation, contributing to the development of a leading online gaming business. I’m also very proud that FDJ acknowledges and values the skilled employees and strong assets within Kindred.”

The SEK130 per share offer corresponds to an enterprise value of SEK27.95 billion (approx. €2.6 billion).

This represents a 24.4 per cent premium compared to the closing price of Kindred’s shares on 19 January 2024, and a 34.9 per cent premium compared to the volume-weighted average trading price on NASDAQ Stockholm during the last 30 days.

The acceptance period for the offer is expected to commence on or around 20 February and expire on or around 19 November 2024.

Shares in Kindred Group Plc. (STO:KIND-SDB) were trading 16.84 per cent higher at SEK122.10 per share in Stockholm early Monday morning.