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Updated January 22nd, 2024 at 14:06 IST

FDJ launches $2.8 billion bid to acquire Kindred Group

The acquisition aims to position the combined entity as the second-largest player in Europe's gaming sector.

Business Desk
The acquisition aims to position the combined entity as the second-largest player in Europe's gaming sector.
Representative | Image:Pixabay

Gaming giants unite: French gaming company La Francaise des Jeux (FDJ) has initiated a bid to acquire Kindred Group, a European online gaming firm, unveiling a proposal of $2.8 billion. FDJ's offer stands at 130 Swedish crowns ($12.43) per share for Kindred, representing a 24 per cent premium over Kindred Group's closing price on January 19. The acquisition aims to position the combined entity as the second-largest player in Europe's gaming sector.

Kindred's board has unanimously recommended its shareholders accept FDJ's offer, emphasising that the terms acknowledge Kindred's long-term growth potential, considering associated risks and uncertainties. FDJ's proposed acquisition values Kindred Group's equity market capitalisation at approximately $2.82 billion.

FDJ Chairperson and CEO Stephane Pallez expressed satisfaction with the proposed acquisition, anticipating a stronger strategic position and substantial value creation for shareholders and stakeholders alike. The deal is expected to enhance FDJ's earnings and lead to a dividend per share increase of over 10 per cent. Notably, FDJ, known for operating lottery scratchcards in France with a 20 per cent equity stake held by the French state, sees the acquisition of Kindred Group as a move to solidify its presence in the gaming industry.

(With Reuters Inputs)

Published January 22nd, 2024 at 14:06 IST

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