France’s lottery and scratch cards monopoly Francaise des Jeux (FDJ) said Friday it had taken the first step towards privatisation, with the State hoping to reap more than a billion euros ($1.1 billion).
A year ago, French lawmakers gave the green light for the privatisation of three Paris airports as well as Francaise de Jeux as part of President Emmanuel Macron’s plan to fund innovation and pay down debt, reports BSS/AFP.
They made it conditional on the state retaining at least a 20-percent share of FDJ. It currently holds 72 percent. In a statement Friday, FDJ said France’s AMF financial markets regulator had approved its registration document a day earlier, “the first step in the planned privatisation of FDJ via an initial public offering on the Euronext regulated market in Paris,” it said. This is expected on November 7. “Definitive completion of this transaction is subject to the AMF’s approval of the prospectus relating to this IPO and to favourable market conditions.” FDJ is the second lottery company in Europe and the fourth globally in terms of gross gaming revenue. It is also France’s main sports betting operator. It employs 2,500 people, and holds exclusive rights for 25 years over lottery games under a French law passed in May. The FDJ said it had 25 million players in 2018, and collected 15.8 billion euros in bets — an increase of 4.4 percent year on year and almost a third over four years.
It distributed 10.7 billion euros in winnings and contributed 3.5 billion to the public purse in the same year.
The company said it expected revenue of about 1.9 billion euros in the 2019 financial year.
“For 2020, the Group is targeting growth in player stakes at the upper end of the +4%/+5% range, benefiting in particular from the UEFA Euro 2020 football tournament.”
Last month, Economy Minister Bruno Le Maire said private investors and members of the public will be able to buy FDJ shares between November 7 and 20.
Company boss Stephane Pallez has said the government hopes to raise more than a billion euros from the privatisation.
In the last 20 years, several leading French companies have fallen into private hands, including France Telecom, Air France, and the bank Credit Lyonnais.
While the main aim of asset sales is to free up funds to promote innovation, the government is also anxious to trim its borrowing needs.
