France's FDJ to offer $2.8 billion to buy online gaming firm Kindred (updated)

FDJ United

22/01/2024 06:24

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      Offering 130 SEK/share to buy Kindred Group
    

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      Premium of around 24% to Kindred's Jan 19 price
    

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      Deal would create new European sector leader
    

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      Deal worth around $2.8 on enterprise value
    

  
 (Adds more detail and background throughout)
       PARIS, Jan 22 (Reuters) - French gaming company La
Francaise des Jeux  FDJ.PA  launched on Monday a takeover offer
to buy European online peer Kindred Group  KINDsdb.ST , in a
deal which it said would create the second-biggest operator in
Europe's gaming sector.
    FDJ said it was offering 130 Swedish crowns ($12.43) a share
for Kindred, which would correspond to an enterprise value of
2.6 billion euros ($2.83 billion) and represent a premium of 24%
to Kindred Group's Jan. 19 closing price.
    FDJ's offer also values Kindred Group's equity market
capitalisation at around 29.5 billion Swedish crowns ($2.82
billion).
        "I am pleased to announce today the proposed acquisition
of Kindred," said FDJ Chairwoman and CEO Stéphane Pallez.
  
        "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%, said the
takeover of Kindred Group would boost its earnings and result in
an accretion of more than 10% in its dividend per share.
  
 ($1=10.4567 Swedish crowns) 
 ($1 = 0.9173 euros)

 (Reporting by Sudip Kar-Gupta; Editing by Clarence Fernandez)
 ((sudip.kargupta@thomsonreuters.com;))