Kindred Group States Interest In Danske Spil Acquisition

KINDRED GROUP STATES INTEREST IN DANSKE SPIL ACQUISITION

27th February, 2017 at 22:47:21
Source: http://www.azonlinecasinos.com

But Danish Government not ready to commit.

Hot on the heels of Kindred Group's (formerly Unibet) acquisition of 32Red, Danish newspaper Børsen reports the company's continued interest in acquiring elements of State-owned gaming company Danske Spil.

According to Børsen, Kindred Group is ready to buy Danske Spil's casino, poker, tips, Zezam and oddset assets for around Krone 4 billion (approx. £ 458 million).

Kindred's aspirations align with the Danish Government's strategy to sell off state-owned companies that compete directly with private firms.

"We are ready to buy Danske Spil. We believe that the price is three to four billion. Kr., And we are ready to invest. We just need a response from the Danish government," Henrik Tjärnström, chief executive officer of Kindred Group told Børsen.

The Government, who has back and forthed on the issue for close on a year, remains uncommitted on the prospects of a sale with Finance Minister Kristian Jensen, in an email response, saying: "Decisions on the sale of a government stake will always depend on a concrete assessment of the company and the framework conditions for its business. There may well be solid reasons why the state remains the owner."

Jensen points out considerations such as competition and problem gambling need to undergo a thorough analysis first, which once complete will enable the Government to make a decision on the future ownership of Danske Spil.

"It [Danske Spil] is a direct competitor to us, and we believe that competition is completely skewed. Danske Spil effectively acts as if it still holds a monopoly, and is in our eyes abusing their dominant position," Tjärnström added.

"Our capital resources are robust enough to buy the entire company, or parts of it. Even a partial sale would level the playing field."

Danish political parties are divided on the future ownership of Danske Spil, with the Liberal Alliance advocating a sale and the Social Democratic Party pushing back saying it is a "gilt-edged" business, why sell?

A view supported by the Danish People's Party who believe, properly managed, Danske Spil will better serve as a continuous source of income.

Any sale would require a majority political party vote.

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