La Française des Jeux (FDJ), France’s leading gaming operator, has announced an important update regarding its acquisition of Kindred Group. The acceptance period for the public offer, initially set to expire on November 19, 2024, has now been advanced to 5:00 PM CEST on October 2, 2024. This change follows the receipt of the final necessary regulatory approval from the French Competition Authority, allowing FDJ to expedite the completion of this strategic acquisition.
Detailed overview of the accelerated timeline:
As Business Wire reports, FDJ’s public offer to acquire all outstanding Swedish Depository Receipts (SDRs) of Kindred Group at a price of SEK 130 per SDR was first announced in January 2024. The offer quickly garnered attention for its potential to significantly reshape the European gaming landscape. Following the publication of the offer document in February and subsequent updates, FDJ has now received the green light from all relevant regulatory bodies, including the final nod from the French Competition Authority, to proceed with the acquisition.
To ensure the success of this offer, several key shareholders of Kindred, including Corvex Management LP, Premier Investissement SAS, Eminence Capital, Nordea, and Veralda, collectively holding 26.72% of Kindred’s outstanding SDRs, have pledged irrevocable commitments to tender their shares to the offer. Additionally, FDJ has directly acquired 1.11% of Kindred’s SDRs from Veralda in a transaction completed in March 2024.
The closure of the acquisition is contingent upon FDJ securing ownership of more than 90% of the total number of Kindred shares on a fully diluted basis. This stipulation is critical as it ensures that FDJ can effectively integrate Kindred’s operations and assets into its existing portfolio without significant opposition.
Strategic implications for FDJ:
This acquisition is poised to significantly boost FDJ’s capabilities and market presence in Europe. By integrating Kindred’s assets, FDJ not only expands its digital and international footprint but also enhances its product offerings across multiple new markets. This strategic move is expected to result in more than a 10% increase in dividend per share for FDJ’s shareholders starting from the 2025 financial year, reflecting the anticipated growth and profitability from the combined operations.
Kindred’s board has fully endorsed the offer, with CEO Nils Andén highlighting the deal’s potential to fast-track the company’s strategic initiatives and more quickly achieve its goal of 100% locally regulated revenue streams.
With the regulatory hurdles now cleared, FDJ is set to announce the outcome of the offer shortly after the new closing date on October 3, 2024. If the transaction proceeds as planned, the settlement and delivery for shareholders who accept the offer are scheduled for around October 11, 2024.