Capital Research and Management Company takes Kindred stake to below 5%
American fund takes last week’s shareholding decrease one step further following £2.1bn bid for the operator from FDJ
Capital Research and Management Company has further reduced its stake in Kindred Group to just 4.81% after last week’s sell-off saw the firm reduce its holdings to 8.63%.
The Los Angeles-based fund’s parent company, The Capital Group Companies, once again informed the Stockholm-listed operator of the move.
The dramatic reduction in shareholdings for the investor comes after French operator FDJ tabled a £2.1bn bid for Kindred Group last week.
Capital Research and Management Company reduced its 10.53% stake in the operator to 8.63% as of 22 January, representing a significant decrease in stock from its previous peak of 15.33% in October 2021.
The fund now holds a smaller stake than SMALLCAP World Fund, which reduce its shareholding in Kindred Group last August to 4.98%.
Capital Research and Management Company’s reduction comes as Kindred Group’s share price jumped by more than 17% since Friday 19 January.
FDJ’s bid for the Unibet parent company was made official on Monday 22 January, with the bid valuing Kindred at a 10.9x multiple of the operator’s underlying EBITDA for 2023.
Kindred is due to release its full-year 2023 and Q4 results next week, 7 February, after delivering a brief performance update following the FDJ bid.
Q4 EBITDA soared 45% during the report period to £56.8m while revenue remained flat with a 2% year-on-year increase.