France's FDJ to offer US$2.8 billion to buy online gaming firm Kindred
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FRENCH gaming company La Francaise des Jeux launched on Monday (Jan 22) a takeover offer to buy European online peer Kindred Group, in a deal it said would create the second-biggest operator in Europe’s gaming sector.
FDJ said it was offering 130 Swedish crowns (S$16.67) a share for Kindred, which would correspond to an enterprise value of US$2.83 billion and represent a premium of 24 per cent to Kindred Group’s Jan 19 closing price.
Kindred’s board unanimously recommended that shareholders accept the offer, the company said in a separate statement.
“The Board believes that the terms of the offer recognise Kindred’s long-term growth prospects, taking into account the risks and uncertainties associated with the realisation of those prospects,” it said.
FDJ’s offer also values Kindred Group’s equity market capitalisation at around 29.5 billion Swedish crowns.
“I am pleased to announce today the proposed acquisition of Kindred,” said FDJ chairwoman and CEO Stephane Pallez.
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“The combination will result in a stronger strategic positioning and significant value creation for the benefit of our shareholders and broader stakeholder,” she added.
FDJ, which runs lottery scratchcards in France and in which the French state holds an equity stake of 20 per cent, said the takeover of Kindred Group would boost its earnings and result in an accretion of more than 10 per cent in its dividend per share. REUTERS
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