France’s dominant lottery and gambling entity FDJ has officially completed its €2.25 billion (£1.88bn/US$2.46bn) acquisition of Swedish-origin Kindred Group.
FDJ–La Française des Jeux–is also the operator of Ireland’s national lottery games and it has now achieved ownership of over 90 percent of Kindred’s share, clearing the way to integrate Kindred’s assets into its growing portfolio.
The acquisition included the purchase of 196 million Swedish depositary receipts (SDRs), which equates to 90.66 percent of Kindred’s share capital.
Previously FDJ, headed by Stéphane Pallez (main picture) secured an irrevocable commitment from five major Kindred shareholders: securing a 26.7 percent trranche of the shares, with Veralda Investments, which was co-founded by Unibet creator Anders Ström.
Today FDJ outlined plans to begin settling shares and initiate payments to Kindred shareholders, starting October 11.
Squeezie
Additionally, the offer period for remaining shareholders has been extended to 18 October, with an offer of SEK130 per SDR (£9.58/US$12.53).
The French Omnichannel aims to complete this phase by October 29, instigating a so-called “squeeze-out” procedure on the Nasdaq Stockholm stock exchange to secure maximum, 100 percent control of the Kindred Group.
This acquisition unites two major players in the European gaming market, furthering FDJ’s expansion beyond France and Ireland into Kindred’s well-established sports betting and online gaming markets across Europe.
The newly-combined entity is projected to generate 26 percent of its revenue from international markets, with 27 percent being generated by iGaming operations.
“I am delighted to announce today the acquisition of Kindred, a leading European player in the competitive online betting and gaming sector,” affirmed FDJ chair and CEO Stéphane Pallez.
Dark Cloud
“Kindred has strong brands, recognised technological excellence and an attractive growth and profitability profile, all of which will bolster FDJ’s strengths.
“The two groups also share high standards for Responsible Gaming and a business model that combines performance and responsibility,” she added.
Meanwhile, there is one dark cloud looming that may darken the financial prospects of the French gaming giant.
Financial daily Les Echos has reported that the upcoming October 10 budget could result in increased social security contributions for gambling operators, potentially impacting FDJ’s operations.
The draft budget proposal suggests a standardisation of the current tax system, potentially raising effective tax rates on sports betting and horse racing by some four-to-five percent.
In addition there’s a new tax on gambling advertising in the pipeline, which if served will affect media investments, customer incentives, influencer marketing, and sponsorships.
Tout suite!
