By French lottery operator Francaise des Jeux (FDJ) has made a cash offer of $2.67 billion to acquire Stockholm-listed gambling operator Kindred Group. This move is set to create one of the largest online gambling companies in Europe.
Under the proposed deal, FDJ is offering 130 Swedish kronor ($12.42) per share for Kindred, totaling SEK27.95 billion. This represents a 24% premium to Friday’s closing price. FDJ aims to expand its international presence as an online betting and gaming operator while strengthening its activities in the French online and betting markets.
The Wall Street Journal first reported the news of this deal.
FDJ currently holds the exclusive rights for lottery and offline sports betting in France, as well as offering online sports betting and online gambling services. The acquisition of Kindred is expected to create a European gaming powerhouse, providing increased scale, technology, content capabilities, and greater diversification.
The board of directors at Kindred has unanimously recommended that shareholders accept FDJ’s offer. Shareholders representing 27.9% of outstanding shares, including Corvex Management, Premier Investissement, Eminence Capital, Veralda Investment, and Nordea, have already committed to accepting the offer.
Kindred believes that this deal will unlock its full potential and provide significant investment and support for further growth.
As of Friday’s closing, Kindred shares were valued at SEK104.50.
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