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Gaming Giant La Francaise des Jeux Proposes $2.83 Bn Takeover of Kindred Group

 |  January 22, 2024

French gaming company La Francaise des Jeux (FDJ) has announced a takeover offer to acquire Swedish online gaming peer Kindred Group. The deal, revealed on Monday, is anticipated to solidify FDJ’s standing as the second-largest operator in Europe’s gaming industry.

FDJ has proposed a takeover price of 130 Swedish crowns ($12.43) per share for Kindred, marking an enterprise value of 2.6 billion euros ($2.83 billion). This offer represents a substantial premium of 24% compared to Kindred Group’s closing price on January 19.

In response to the news, Kindred shares experienced a surge of approximately 17%, reaching 122.6 crowns, while FDJ’s stock saw a 3.9% uptick in early trading.

Kindred Group had been exploring strategic alternatives since last year, including the possibility of a merger or sale of the company. Several parties had expressed interest in Kindred, according to a statement from the Swedish firm.

However, FDJ’s offer emerged as the frontrunner, with Kindred’s board unanimously recommending the proposal as the “most attractive outcome for shareholders.” In a separate statement, the board expressed confidence that FDJ’s terms recognized Kindred’s long-term growth prospects, factoring in associated risks and uncertainties.

FDJ Chairwoman and CEO Stephane Pallez expressed enthusiasm about the proposed acquisition of Kindred, stating, “I am pleased to announce today the proposed acquisition of Kindred. The combination will result in a stronger strategic positioning and significant value creation for the benefit of our shareholders and broader stakeholders.”

The deal, if successfully concluded, is expected to reshape the landscape of the European gaming sector, creating a powerhouse with substantial influence and resources. As the gaming industry continues to evolve, this acquisition reflects the companies’ commitment to adapting and thriving in a dynamic and competitive market.

Investors and industry analysts will be closely monitoring the developments surrounding this potential acquisition, as both FDJ and Kindred gear up for a new chapter in the rapidly evolving world of online gaming.

Source: Reuters