FDJ increases Kindred shareholding to over 98% after offer extension

FDJ
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Groupe Française des Jeux (FDJ) has announced that its shareholding in Kindred Group has increased to over 98% following the conclusion of its public tender offer extension.

Earlier this month, the French gambling group completed its acquisition of Unibet and 32Red operator for nearly €2.5bn, a transaction that had been in the works since an offer of SEK 130 in cash per Swedish Depository Receipt (SDRs) was submitted back in January this year.

Following the end of the first settlement delivery of the offer on 11 October, FDJ held 91.77% of Kindred’s share capital, tendering 195,659,291 Kindred SDRs, representing 90.66% of the group’s capital, alongside acquiring 2,400,000 Kindred SDRs directly from Veralda, representing 1.11% of the group’s share capital.

However, at the time, FDJ extended its offer to 18 October to allow for Kindred shareholders who have not tendered their shares to do so on unchanged terms. With that date now passed, the group has announced that an additional 14,734,917 Kindred SDRs were tendered, representing 6.83% of the share capital.

Following settlement delivery of the extended offer, expected to take place on 29 October, FDJ’s shareholding in Kindred will therefore be 98.6%.

Since FDJ holds over 90% of Kindred’s share capital, the group intends to “request the implementation of the squeeze-out procedure” following Kindred’s articles of association to acquire all the shares not tendered in the public offer, delisting Kindred’s SDRs from Nasdaq Stockholm.

Earlier this month, Stéphane Pallez, Chair and CEO of the FDJ Group, described the Kindred acquisition as creating a “European champion” that will produce sustainable and profitable growth.

FDJ noted that thanks to the transaction, it has “a diversified and balanced profile, based on monopoly activities, primarily lotteries, in France and Ireland, and on online sports betting and gaming activities open to competition in Europe”.

The group also expects the offer to generate “around 26% of its revenue internationally” thanks to Kindred’s European market presence in countries such as the Netherlands, the UK, France, Sweden and Belgium.

In addition, FDJ stated that its online gaming range open to competition will account for “around 27% of its business”, which includes sports and horse betting, poker and casino offerings.

Last week, Kindred added personnel from FDJ to its Board of Directors to replace recent resignations, with Executive Vice-President Finance, Performance and Strategy Pascal Chaffard, Finance Director Edeline Minaire and Chief Regulation Officer Célia Vérot being elected.