French gambling company La Française des Jeux SA (FDJ) has announced that it has made an offer to acquire Unibet parent Kindred Group. In a press release, FDJ stated that the offer is for SEK130 ($12.43) per share; Kindred said that the all-cash proposal totals SEK27.951 million ($2.7 billion).
The offer is a 24% premium over Kindred’s closing price on Friday and a 35% premium over the 30-day weighted average.
FDJ says that the deal would provide the company with “stronger revenue and earnings growth,” as one would hope it would, and make it Europe’s second-largest gambling company. It vows to only operate in regulated markets or those that are “on the path of becoming regulated.”
FDJ also believes that the shareholder divided will increase. Kindred’s Board of Directors has unanimously approved the deal and naturally encourages the company’s shareholders to do the same.
In Monday’s press release, FDJ Chairwoman and CEO said of the possible acquisition, “Fully aligned with our strategy, it will give the Group a diversified and balanced profile, based on several pillars: the monopoly activities, mainly the lottery, on our French historical market and, since November, in Ireland, with the acquisition of the Irish lottery operator PLI; and online sports betting and gaming activities open to competition in Europe.”
She added, “The combination will result in a stronger strategic positioning and significant value creation for the benefit of our shareholders and broader stakeholders.”
Nils Andén, CEO of Kindred, also weighed in, saying that the deal would create a “leading European gaming operator with the financial and strategic capabilities to further expand its global footprint.”
FDJ, 20% owned by the French government, is best known for its draw and scratch-off lottery offerings in France. It also operates sports betting and online gambling sites.
Kindred, as mentioned, owns the Unibet brand. Most of its other brands are known best in Europe, though players from around the world may also know 32Red and Bingo.com. The company began a strategic review of its operations in April 2023 in order to “explore strategic alternatives for the Company.”
The Board said that it would consider all options that could “deliver value for the Company’s shareholders, including the merger or sale of all or part of the company. Because that option was mentioned, the industry and the investing world assumed that a sale would be the end result. While nothing is set in stone, it certainly seems like everyone was right.
Shares of Kindred Group leapt 16.65% on the news, closing Monday at SEK121.90 ($11.69).
