Kindred representatives have contacted many companies trying to sell Unibet operators under the pressure of minority shareholders, but iGB understands but is not yet interested in trading.
The process began when Corvex Management became Kindred’s second-largest shareholder this year and immediately asked the board to sell it.
At the time, Kindred Chairman Ebert Carlson said the business was confident in its current strategy.
However, iGB understands that the Board of Directors is taking steps to assess the interests of future buyers. These included European giants Entain, 888, Tipico, as well as private equity businesses such as Apollo Global and Blackstone. However, he had little interest in pursuing that opportunity.
There was a consensus among the operators involved that the business “could not update its business model in response to market regulations.” That is, the acquisition was not considered worthwhile at the current price.
Kindred shares are currently trading at SEK 77.66 (£ 6.35 / € 7.44 / $ 7.59) and have a market capitalization of SEK 17.64bn. Business revenue before interest, taxes, depreciation and amortization in 2021 was £ 94.9m, which is approximately one-fifteenth of market capitalization.
Someone with knowledge of the sales process said Kindred has declared in recent years a greater focus on regulated markets, but has suggested that further progress is needed.
“In my opinion, this is because the management hasn’t changed,” they said.
Other sources, such as raising debt to make an acquisition of this size, affect other factors that do not advance opportunities, as well as the strategic suitability of strong operators in the same region. Pointed out that he gave.
On the other hand, in the private equity sector, the regulatory hurdles associated with owning a gambling business and the associated time commitments were raised as issues.
Another source who knew the situation said Kindred’s efforts to create its own sportsbook increased uncertainty.
Corvex, which owns 10.12% of Kindred, may take further steps to accelerate potential transactions, as it appears unlikely to be sold, sources suggest. This may include encouraging management changes or encouraging the board to take over. However, performing these steps does not guarantee that the transaction will be successful.
Kindred refused to comment on this issue, as Entain and 888 did. Representatives of Tipico and Colvex did not respond to requests for comment.
