FDJ publishes $2.7 billion tender offer document for Kindred Group acquisition

French betting and gambling operator La Française des Jeux (FDJ) has released the public tender offer document for its proposed acquisition of Kindred Group. The document, unveiled on February 19, follows FDJ's offer last month, valuing Kindred at SEK27.96 billion ($2.69 billion).

FDJ has proposed SEK130 ($12.54) in cash for each Swedish Depository Receipt (SDR) in Kindred, representing a 24.4% increase from the SEK104.50 ($10.08) price of Kindred shares at the close on January 19, the final day of trading before the offer was disclosed.

The public tender document confirms this offer, with an acceptance period scheduled to begin on February 20 and running until November 19. The Kindred board has unanimously recommended shareholders accept the offer, and the FDJ board is supporting the proposal as well.

FDJ anticipates an initial commencement of the settlement date on November 28. Certain conditions must be met for the deal to close, and FDJ expects to fulfill these by the end of the acceptance period. If approvals are obtained before the end of this period, early closure of the acceptance period is possible.

Last month, FDJ stated that the deal would establish the second-largest operator in Europe's gaming sector, creating a "European gaming champion" with enhanced revenue and earnings growth by combining the businesses.

“In this market, Kindred is one of the leading operators, combining strong brands, best-in-class technology platforms, an attractive growth profile and a committed approach to responsible gaming,” FDJ CEO and Chair Stéphane Pallez said.

“Given their respective histories, strategic strengths and core values, FDJ and Kindred are highly complementary. The combination will result in a stronger strategic positioning and significant value creation for the benefit of our shareholders and broader stakeholders.”

“I believe that combining with FDJ, Kindred can accelerate the delivery of long-term strategic projects, continue to grow in core markets and provide a trusted source of entertainment to customers. It will also speed up our path towards 100% locally regulated revenue,” Kindred CEO Nils Andén said.