In a move to solidify its position in the European gaming sector, French gaming company La Francaise des Jeux (FDJ.PA) has announced a takeover offer to acquire its European online peer, Kindred Group (KINDsdb.ST). The proposed deal, unveiled on Monday, aims to create the second-largest gaming operator in Europe, with significant implications for the industry.
FDJ has presented a compelling offer of 130 Swedish crowns ($12.43) per share for Kindred, amounting to an enterprise value of 2.6 billion euros ($2.83 billion). This offer represents a noteworthy premium of 24% over Kindred Group’s closing price on January 19. Kindred’s board, recognizing the potential of the deal, has unanimously recommended that shareholders accept the offer, emphasizing its alignment with Kindred’s long-term growth prospects.
Valuation and Strategic Impact
The proposed acquisition places a valuation of around 29.5 billion Swedish crowns ($2.82 billion) on Kindred Group’s equity market capitalization. FDJ’s Chairwoman and CEO, Stephane Pallez, expressed enthusiasm about the strategic synergy, foreseeing a stronger positioning and significant value creation for shareholders and stakeholders alike. The move is poised to enhance FDJ’s earnings and result in an accretion of more than 10% in its dividend per share.
This bold acquisition by FDJ underscores the rapidly evolving landscape of the gaming industry. As the second-largest operator in Europe, the combined entity will wield considerable influence, potentially reshaping the competitive dynamics in the region. The move aligns with FDJ’s commitment to staying at the forefront of industry trends and leveraging opportunities for sustained growth.
What is FDJ’s offer for Kindred Group?
FDJ is offering 130 Swedish crowns ($12.43) per share for Kindred, translating to an enterprise value of 2.6 billion euros ($2.83 billion), representing a 24% premium over Kindred Group’s closing price on January 19.
Why does Kindred’s board recommend accepting the offer?
Kindred’s board unanimously recommends accepting FDJ’s offer, citing their belief that the terms of the offer recognize Kindred’s long-term growth prospects, considering the associated risks and uncertainties.
How does this acquisition impact FDJ’s financials?
The takeover of Kindred Group is anticipated to boost FDJ’s earnings and result in an accretion of more than 10% in its dividend per share.
FDJ’s strategic move to acquire Kindred Group marks a significant milestone in the European gaming sector. The proposed merger not only positions FDJ as a major player but also sets the stage for enhanced competition and collaboration within the industry. As the gaming landscape continues to evolve, this acquisition signals a proactive approach by FDJ to capitalize on emerging opportunities and drive sustainable value for its stakeholders.
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