Kindred Expects Buyout Offers by the End of May
LISTEN TO THIS ARTICLE:Earlier this year, as part of its strategic review, Kindred Group Plc announced plans for a business sale but said that it would not be providing any further information until a decision was made.
There has been a spate of departures in recent times involving C-level executives, including chief executive Henrik Tjärnström, which has led to speculation about the company’s future. There have also been complaints from stakeholders that Kindred’s plan to enter the US sports betting market using its own dedicated platform has cost it too much.
More recently, a report from Bloomberg cited people with knowledge of the matter saying that Kindred is looking to sell and expects the first round of bids to be finished by the end of the month.
Following the news, stock in Kindred rose to reach its highest level since October 2021. Several industry players are rumored to be interested in the company, including MGM Resorts International, Evolution, Entain, and Flutter.
Purchasing Kindred will not be a simple task. It will require large amounts of cash and possibly debt financing. The company has undertaken its strategic review, working together with Canaccord Genuity Group Inc., PJT Partners Inc., and Morgan Stanley, in order to ensure it is aware of all its options.
There is speculation that it will be either a merger or a sale. David Brohan, an analyst at Goodbody, suggested to Bloomberg that companies might be looking to purchase just part of the company rather than the entire business.
Fanatics, a new company in the sports betting industry, it believed to have a great deal of cash available to make purchases. The company will soon be launching in Massachusetts, and it is already live in Ohio. Furthermore, Furthermore, Fanatics has acquired PointsBet’s North American assets.
Brohan believes that MGM and Fanatics may be interested in the entire business, while Entain and Flutter are likely to be more interested in acquiring just small parts of Kindred. However, until Kindred provides more details, it is little more than speculation.
Will Acquiring Kindred Be a Simple Task?
Acquiring Kindred would be a complex task, requiring substantial cash and potentially debt financing. Speculation suggests that the acquisition could involve either a merger or a sale, and some analysts believe that the buyer might want to acquire a fragment of the company instead of the whole thing. However, until Kindred provides more information, these details remain speculative.
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