La Française des jeux launches a takeover bid for its Swedish counterpart
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La Française des jeux (FDJ) announced this Monday morning that it was launching a public purchase offer to acquire the Swedish group Kindred Group, with the aim of creating the second largest operator in the games sector in Europe. “I am pleased to announce today the planned acquisition of Kindred,” declared Stéphane Pallez, President and CEO of FDJ in a communicated. “The combination will result in a stronger strategic positioning and significant value creation for the benefit of our shareholders and broader stakeholders,” she added.
The French games company, in which the state has a 20% stake, is offering 130 Swedish crowns ($11.43) per Kindred share, which would correspond to a company value of 2.6 billion euros and would represent a premium of 24% compared to the Swedish group’s closing price on January 19. Both the Swedish Nasdaq and the Stock Exchange reacted well to this announcement: Kindred shares increased by around 17% to 122.6 crowns while those of FDJ rose by 3.9% at the start of the session.
The Swedish company chose the “most attractive” offer
Kindred has attracted interest from “multiple parties” since it opened the door last year to a merger or sale. FDJ’s offer represented “the most attractive outcome for shareholders”, prompting Kindred’s board of directors to unanimously recommend the offer. “The Board believes that the terms of the offer recognize Kindred’s long-term growth prospects, taking into account the risks and uncertainties associated with the achievement of these prospects,” assures the company in a separate press release.
The FDJ announced this morning a turnover for 2023 of 2.6 billion euros, an increase of + 6.5% compared to the previous year, in particular thanks to the success of EuroMillions and the launch of EuroDreams beginning of November. The company also launched a new scratch game at the beginning of the month.
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