French lottery operator, La Française des Jeux (FDJ), has announced its intention to propose a public cash offer for online gambling company Kindred in a deal worth SEK27.96 billion (£2.10 billion/€2.45 billion/$2.67 billion).
According to a statement released by Kindred today, the deal will see FDJ pay a 24.4% premium over the closing price of SEK 104.50 on Nasdaq Stockholm on 19 January 2024, the last trading day before the offer’s announcement.
The offer acceptance period is expected to start on 20th February 2024 and conclude on 19th November 2024.
Kindred has stated that completion of the offer hinges on several conditions:
- FDJ acquiring more than 90% of Kindred’s total shares (on a fully diluted basis).
- Necessary regulatory, governmental, or similar clearances and approvals being obtained on acceptable terms.
- No material adverse changes affecting Kindred’s financial position, operations, licenses, revenues, results, liquidity, solidity, equity, or assets.
- No legal or regulatory obstacles that significantly impede the offer or acquisition.
- Kindred refraining from any actions that could hinder the offer or its prerequisites.
- Amendments to Kindred’s articles of association and SDR terms to facilitate the transfer of all shares to FDJ, assuming FDJ acquires more than 90% of Kindred’s total outstanding SDRs.
- All public information from Kindred being accurate and complete, and no superior offer from another party for Kindred’s shares or SDRs.
FDJ retains the right to waive these conditions. Importantly, this offer is not contingent upon financing arrangements.
Speaking in a statement released by FDJ, Stéphane Pallez, Chairperson 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.
In this market, Kindred is one of the leading operators, combining strong brands, best-in-class technology platforms, an attractive growth profile and a committed approach to responsible gaming. 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.”
Nils Andén, CEO of Kindred, said:
“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% 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.”
Based in London, Natasha is a former sports journalist with experience working for some of the biggest athletes & brands in the world of sports and iGaming.