Capital Research and Management Company, a subsidiary of The Capital Group Companies, Inc., has reduced its stake in Kindred Group. The news of the reduction in shares and voting rights was confirmed by Kindred on Wednesday. According to the notification, as of January 22, 2024, Capital Research and Management Company now holds 8.63% of shares and voting rights in Kindred.

This move comes at a significant time when La Française des Jeux (FDJ) announced its $2.5 billion bid to acquire Kindred. The strategic bid by FDJ aims to expand its global presence and strengthen its foothold in Europe. Following FDJ’s announcement, the shares of Kindred saw a sharp increase, with a 17% surge on the Stockholm Nasdaq as of January 22, 2024.

Capital Research and Management Company has had a fluctuating stake in Kindred over the years. The highest percentage of shares and voting rights held by the company was 15.33% in October 2021, but this was reduced to 10.86% in July 2022. The latest reduction to 8.63% demonstrates a shift in the company’s investment strategy.

In response to the notification from Capital Research and Management Company, Kindred Group released a statement on January 23, 2024, acknowledging the reduced holdings by the company.

Amidst the takeover bid from FDJ, Kindred also released its preliminary Q4 2024 results, indicating positive growth in revenue and EBITDA. The company reported a 2% year-over-year increase in revenue, reaching £312.9 million ($398 million) for the fourth quarter. Additionally, underlying EBITDA for the period saw a substantial rise, reaching £56.8 million ($72.2 million) compared to £39.1 million ($49.7 million) in the fourth quarter of 2022.

The combination of the strategic bid from FDJ and the positive financial results for Q4 has garnered attention for Kindred Group, positioning the company for potential developments in the near future.

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