FDJ initiates squeeze-out to gain full control of Kindred

Garance Limouzy October 23, 2024

La Française des Jeux (FDJ) has taken an extra step toward full ownership of Kindred Group, exercising its right to a “squeeze-out” of minority shareholders. The decision comes after FDJ’s public offer for Kindred shares, launched earlier this year, was largely successful, securing more than 98 percent of the company’s outstanding shares.

According to Kindred, FDJ formally notified the company of its intent to proceed with the squeeze-out on 3 October 3. The move is part of FDJ’s strategy to acquire the remaining shares from those shareholders who had not accepted the initial offer.

FDJ initially presented a public cash offer in January 2024, proposing to purchase each Swedish Depository Receipt (SDR) representing Kindred shares for SEK 130 (11.38 euros). This offer, aimed at Kindred’s shareholders, was well-received. By the close of the initial acceptance period on 2 October, 2024, approximately 90.66 percent of shareholders had tendered their shares to FDJ. Additionally, FDJ acquired an extra 1.11 percent of the shares from Veralda, a private shareholder, bringing its total stake to 91.77 percent.

Given the substantial level of acceptance, FDJ decided to finalise its acquisition of Kindred’s shares. To give remaining shareholders more time to comply, the offer period was extended until 18 October, 2024. During this extended window, FDJ secured an additional 6.83 percent of shares, bringing its total ownership to 98.6 percent of the company.

Squeeze-out right invoked

With the vast majority of Kindred’s shares now under its control, FDJ initiated the squeeze-out process, invoking its right to purchase the remaining shares held by minority shareholders who did not tender during the offer period. In accordance with Kindred’s Articles of Association, FDJ is compelling these remaining shareholders to sell their shares under the same conditions as the original offer.

As detailed by Kindred, minority shareholders must complete the transfer of their shares to FDJ by 27 December 2024. Those who fail to meet this deadline will have their shares automatically transferred under the terms set out in the company’s Articles of Association.