Candle Lake Limited, under the influence of Cayman Islands investor Kenneth Dart, has announced a public cash offer aimed at acquiring all outstanding shares of Evolution AB. The offer is priced at SEK695 ($72.89) per share, which equates to a valuation of about SEK131.7 billion based on the 189.45 million shares that are currently outstanding, excluding approximately 9.78 million treasury shares owned by Evolution.
For shareholders outside of Candle Lake's control, the total proposal amounts to roughly SEK90.1 billion, enhancing the attractiveness of the bid.
This action follows a series of market transactions that elevated Candle Lake's stake above the necessary threshold set by Swedish takeover regulations. On July 24, Candle Lake raised its ownership in Evolution to 30%, acquiring an additional 2,050,000 shares priced at a maximum of SEK695 each.
Currently, Candle Lake and its related parties hold 59,798,619 shares in Evolution, accounting for about 31.56% of the total outstanding shares. This surpasses the mandatory bid threshold, leading to the requirement for the tender offer.
Additionally, Candle Lake maintains indirect economic exposure to around 4,037,416 shares, bringing its total interest to approximately 32.04%.
The offer price correlates to Evolution’s closing value on July 24, 2026, which was roughly 1.6% higher than the 20-day volume-weighted average closing price (VWAP) for that day. However, the bid represents a 5.7% discount compared to Evolution’s closing price on August 12, 2026, and a discount of 3.3% relative to the 20-day VWAP as of that later date.
The acceptance window for shareholders is anticipated to extend from about August 17 to September 15, 2026. If successful, the settlement is expected to commence on September 23, 2026.
Candle Lake has characterized Evolution as a well-run and profit-generating company. It has declared no intentions to interfere significantly with Evolution's operations, management, or employment agreements. However, it has indicated that should its ownership exceed 90%, it would aim to delist Evolution from Nasdaq Stockholm and transition it to a private entity.
Candle Lake has secured financing for this bid through its available cash, liquid securities, and committed credit facilities, describing itself as a financial investment vehicle devoid of operational activities.
Candle Lake’s journey with Evolution began in mid-2024, during which it accumulated a total of 10.46 million shares in the half-year leading up to the mandatory offer. Per Nasdaq Stockholm’s takeover regulations, the board of Evolution is required to release a statement concerning the offer no later than two weeks before the acceptance window concludes.
Recently, Evolution had also terminated its proposed merger with Galaxy Gaming, a table games and casino technology provider. CEO Martin Carlesund remarked that while the merger wasn’t essential to business, Evolution would continue its collaboration with Galaxy Gaming through their existing business rapport. This news comes on the heels of a significant regulatory challenge, where Evolution’s license faced near suspension in the UK due to a Gambling Commission discovery that its live casino offerings appeared on unlicensed sites accessible to UK consumers.
