Groupe FDJ Receives Swedish Regulatory Approval for Kindred Buyout

The Groupe Française des Jeux (Groupe FDJ) has officially received regulatory approval from the Financial Supervisory Authority in Sweden, Finansinspektionen, to proceed with its offer to acquire Kindred Group Plc.

This approval allows FDJ to make a formal offer of SEK 130 (€11.40) per share to acquire Kindred Group, a deal that was announced on January 22nd. The financial authorization grants FDJ a 39-week period from February 20th to complete its all-cash buyout of Kindred Group, with the deal valued at approximately €2.6 billion.

However, the completion of the tender offer is contingent on regulatory authorizations and FDJ’s acquisition of at least 90% of Kindred’s capital. On a positive note, FDJ’s approach has already received a unanimous recommendation from Kindred’s Board of Directors and is supported by five major shareholders who hold a total of 27.9% of the capital and irrevocably support FDJ’s deal and terms.

Kindred investors have also been informed that an Extraordinary General Meeting (EGM) is scheduled for March 15th to discuss a potential change to the Articles of Association to allow for the implementation of a squeeze-out procedure in the event that FDJ acquires at least 90% of Kindred’s capital.

Looking ahead, FDJ’s board has allocated a nine-month period to secure all the necessary regulatory authorizations for the acquisition of Kindred Group. In the recent publication of the company’s full-year 2023 results, Group CEO and President Stéphane Pallez reiterated the company’s commitment to “forming a new European gambling champion, generating 100% of revenues from regulated markets.”

It is important to emphasize that this acquisition holds great significance for both Groupe FDJ and Kindred Group, marking a crucial step in the formation of a major player in the European gambling industry. With the necessary regulatory approval now secured, FDJ is poised to move forward with its plan to acquire Kindred Group, a move that will undoubtedly have a significant impact on the industry landscape.

As the process unfolds, all eyes will be on the upcoming Extraordinary General Meeting in March, where crucial decisions will be made regarding the potential acquisition. Stay tuned for more updates on this exciting development in the world of European gambling.