FDJ offers to buy Kindred Group for an enterprise value of 2.6 billion euros

(Reuters) – The gambling specialist FDJ launched a takeover bid on Monday for the online gaming group Kindred Group, an operation at the end of which the French group aims to become the European number two in the sector.

FDJ is offering to buy Kindred for 130 Swedish crowns per share, valuing the company at 2.6 billion euros. This offer represents a 24% premium on Kindred’s closing price on January 19.

On the Stockholm Stock Exchange, Kindred shares jumped more than 16% on Monday morning to 121.85 Swedish crowns, while FDJ shares climbed more than 4% on the Paris Stock Exchange.

Kindred said in a separate statement that it had received interest from “several parties” since the Swedish group last year began examining strategic options, including a possible merger or sale.

FDJ’s offer represented “the most attractive outcome for shareholders”, he said, prompting his 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 achieving those prospects,” the company said.

FDJ, whose business includes lotteries and scratch games and in which the French state has a 20% stake, said the acquisition would boost its profits and result in a more than 10% increase in its dividend. from that paid for the 2025 financial year.

“(This operation) will result in a strengthened strategic positioning and significant value creation for the benefit of our shareholders and all of the group’s stakeholders,” said Stéphane Pallez, CEO of FDJ in a press release.

(Reporting Sudip Kar-Gupta in Paris, with the contribution of Stine Jacobsen in Copenhagen; French version Nicolas Delame, Diana Mandiá and Stéphanie Hamel, edited by Blandine Hénault)