Groupe FDJ has laid out its ambitions to form a “new European gaming champion” as it launched its offer to acquire Kindred Group.
The all cash tender is set at around €2.6bn as it aims to acquire Kindred Group Plc outright and significantly bolster its gaming offering in Europe.
The strength of FDJ’s approach was underlined as the offer has been “unanimously recommended by Kindred’s Board of Directors” and “five key shareholders holding a combined 27.9 per cent of the capital irrevocably support FDJ’s deal and terms”.
Stéphane Pallez, Chairwoman and CEO of FDJ Group, 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.
“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. The combination will result in a stronger strategic positioning and significant value creation for the benefit of our shareholders and broader stakeholders.”
As detailed by FDJ’s recent Paris filing, the offer “represents a premium of 24 per cent over the closing price on 19 January 2024 and 35 per cent over the weighted average price for the last 30 trading days.
Kindred investors were notified of FDJ’s plans to form a newly merged European lotteries, gaming and sportsbook powerhouse, that would instantly become Europe’s “second-largest operator in the gaming sector”.
Nils Andén, CEO of Kindred, added: “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.
“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.”
