FDJ eyes €1bn IPO on 7 November
French government to reduce stake from 72% to just 20% once privatisation process completes
French national lottery operator Francais des Jeux (FDJ) will be IPO’d from 7-20 November, the French government has confirmed.
There will be no limitation on the number of shares available, and retail investors will receive one free share for every ten shares purchased, together with a 2% discount on the offer price if shares are retained for an eighteen-month period.
At present, the French government owns a 72% stake in FDJ, which will reduce to just 20% once the privatisation process completes.
The French government is aiming to generate over €1bn from the sale, which will be used to augment France’s state budget. Similar divestments of state-owned shares are also to take place in French transport company Groupe ADP and utility company Engie.
In a meeting reported by French newspaper Le Journal De Dimanche, French finance minister Bruno Le Maire said the decision not to restrict the number of shares available was made to maximise the potential profits from the sale.
“To give a goal is to set a limit, and I do not want to set a limit to our ambition,” Le Maire added.
The French finance minister also expressed his hope that the sale would enable FDJ to realise its full potential.
Following the announcement of privatisation earlier this year, the French government has also proposed several changes to France’s current regulatory structure.
As part of these changes, the French government has prepared a precise legal statement confirming FDJ’s exclusivity on lottery-based gaming, something which previously has not been formally recognised in French law.
FDJ’s day-to-day activities will be subject to a series of regulatory standards and a specific agreement detailing company obligations concerning the exploitation of exclusive games. In addition to this, FDJ will be required to allow a state representative or commissioner to join its board of directors, representing the French government at board meetings.
This representative will have powers to block decisions at board level which are deemed to be inconsistent with the company objectives.
The French government will also retain the right to block executive appointments and has final approval on decisions by any shareholder to increase their shareholding beyond 10%.