Kindred remains set on strategic direction after Corvex investment

Kindred remains set on strategic direction after Corvex investment

Kindred’s Chair of the Board, Evert Carlsson, has stated his confidence in the company’s long-term opportunities after Corvex Management disclosed an investment in the group. 

Stating the company’s board and management are “fully committed” to the firm’s current strategic direction, Carlsson said: “We are confident about the long-term opportunities for the company and value creation potential for all our shareholders. 

“We welcome and look forward to continuing a constructive dialogue with all our shareholders going forward.”

Earlier today, Corvex Management disclosed to the Stockholm Nasdaq that it has built up a 10 per cent shareholding in Kindred. 

The statement read: “We are excited to be large shareholders of Kindred. To date, we have had constructive conversations with both the Chairman of the Board and senior management of Kindred. We believe Kindred has built a strategic position in the rapidly growing global online gaming space.

“Given recent developments, we believe the Kindred board should immediately retain a leading, global financial advisor to evaluate strategic alternatives, including the potential value that could be achieved through a sale or business combination. A fully informed board will be in the best position to weigh any strategic alternatives, compared with Kindred’s stand-alone business plan. 

“While we have not pre-judged any path for Kindred, we believe the board should possess all relevant market information and let the data drive the decision-making process. We look forward to continuing to work with the Kindred team.”

Issuing a statement to Kindred investors, Corvex underlined that it had ‘not pre-judged any path for Kindred, we believe the Board should possess all relevant market information and let the data drive the decision-making process’.

Last week, Kindred published its Q1 trading results, registering a 77 per cent decline in EBITDA to £247m. This performance was attributed to “short-term European headwinds applying pressure” on the group’s profit-making capacities.

Author: Ava Harvey