French gambling giant FDJ makes takeover offer for Unibet parent company Kindred Group

Unibet's parent company Kindred Group is the subject of a £2.2 billion (€2.6bn) takeover offer from France's national lottery operator La Francaise Des Jeux (FDJ).

Kindred's board of directors has unanimously recommended that shareholders accept the offer.

The group, which also operates brands including 32Red, launched a strategic review in April during a difficult year which also featured the departure of a number of senior figures, long-standing chief executive Henrik Tjarnstrom among them.

FDJ claims to be the number one gambling operator in France, the second largest European lottery and fourth largest in the world.

The company's chief executive and chairwoman Stephane Pallez said on Monday the deal would diversify the company's profile in online sports betting and gaming in Europe.

She added: "In this market, Kindred is one of the leading operators, combining strong brands, best-in-class technology platforms, an attractive growth profile and a committed approach to responsible gaming. 

"Given their respective histories, strategic strengths and core values, FDJ and Kindred are highly complementary, and I will be delighted to welcome Kindred’s management team and many talented individuals into the combined group following this transaction."

Kindred chief executive Nils Anden said the deal would create a leading European gaming operator with the capability to expand its global footprint.

He added: "I believe that combining with FDJ, Kindred can accelerate the delivery of long-term strategic projects, continue to grow in core markets, and provide a trusted source of entertainment to customers."

David Brohan, gaming and leisure analyst at stockbrokers Goodbody, said he expected the deal would be supported by Kindred's shareholders.

He added: "The valuation achieved continues to highlight the value in European gaming assets, and the ongoing trend of consolidation in the sector."

Kindred also released a trading update to coincide with the news, revealing that total revenue for the fourth quarter of 2023 was £312.9m, an increase of two per cent on the same period last year. 

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