Capital Research reduces shares in Kindred as FDJ makes takeover bid

Capital Research and Management Company, a subsidiary of The Capital Group Companies, Inc., has reduced its shares in Kindred Group, as confirmed by Kindred Group. The notification from Capital Research and Management Company indicated that as of January 22, 2024, the company now holds 8.63% of shares and voting rights in Kindred. This move coincides with La Française des Jeux (FDJ) announcing a $2.5 billion bid to acquire Kindred, aiming to expand its global presence.

Following FDJ’s announcement, Kindred’s shares experienced a significant increase, rising by 17% on the Stockholm Nasdaq as of January 22, 2024. Capital Research and Management Company’s stake in Kindred has fluctuated over the years, reaching a high of 15.33% in October 2021 and decreasing to 10.86% in July 2022.

In response to the reduced number of shares and voting rights, Kindred Group released a statement on January 23, 2024, acknowledging the notification from The Capital Group Companies, Inc.

Additionally, amid the takeover bid from FDJ, Kindred released its preliminary Q4 2024 results showing growth in both revenue and EBITDA. The company’s revenue for the fourth quarter reached £312.9 million ($398 million), reflecting a 2% year-over-year increase. Meanwhile, the underlying EBITDA for the same period also grew, reaching £56.8 million ($72.2 million), compared to £39.1 million ($49.7 million) in the fourth quarter of 2022.

The strategic moves by Capital Research and Management Company and the proposed bid from FDJ have contributed to significant developments in Kindred’s shareholder makeup and financial performance.