France’s Gaming Operator FDJ Moves Step Closer To Taking Over Kindred Group

Article by : Erik Gibbs Feb 22, 2024

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La Française des Jeux (FDJ), France’s leading lottery and sports betting operator, has received approval from the Swedish regulator for its acquisition proposal of Kindred Group.

With the official nod from the Swedish Financial Supervisory Authority (SFSA), FDJ is set to launch its offer on February 20, spanning a maximum of 39 weeks. However, the completion is contingent on further regulatory clearances and FDJ securing at least 90% of Kindred’s issued capital.

Kindred’s extraordinary general meeting on March 15 will explore potential amendments to facilitate a squeeze-out procedure if FDJ surpasses the 90% ownership threshold.

FDJ’s acquisition offer for Kindred Group, available in both English and French on its official website, reiterates key details. The proposal outlines a payment of SEK130 (US$12.53) per share for acquiring Kindred’s business, with a slated closure date of November 28, as per FDJ’s published terms. FDJ’s board has approved the move, and Kindred’s board encourages shareholder approval.

Meanwhile, Capital Research and Management Company, a subsidiary of The Capital Group Companies, trimmed its Kindred Group shares amid a share price surge.

In a separate development, FDJ reported robust FY 2023 results, with revenues reaching $2.82 million, a 6.5% YoY increase, and EBITDA at $705.9 million, indicating an 11.3% increase and a 25.1% margin.

FDJ’s proposal emerged as the “optimal choice for shareholders,” leading Kindred’s board to unanimously endorse the offer. The board expressed confidence in the offer’s acknowledgment of Kindred’s extended growth potential, considering the associated risks and uncertainties.

FDJ’s Chairwoman and CEO, Stephane Pallez, announced the proposed acquisition, emphasizing the resulting enhanced strategic positioning and substantial value generation for shareholders and broader stakeholders.

FDJ, a prominent player in the global gaming industry and a frontrunner in France, provides responsible gaming options to the public.

The company’s offer includes lottery games, sports betting (under ParionsSport point de vente and ParionsSport en ligne brands), horse-race betting and poker.

FDJ’s success has been pinned to an extensive portfolio of renowned brands, the premier local sales network in France, continuous investments and a thriving market.

The group employs an innovative strategy to enhance the appeal of its gaming and services across various distribution channels, which has allowed the company to become a prominent gaming provider.