Candle Lake Limited has initiated a mandatory cash offer for Evolution AB, placing the live casino supplier's valuation at approximately €11.94 billion after the investor exceeded Sweden's mandatory takeover threshold. The offer stands at €63.02 per share, following Candle Lake's acquisition of over 30% of Evolution's outstanding shares. Despite the obligatory nature of the bid triggered by this stake increase, Candle Lake clarified that it does not aim for full control of the company.
Candle Lake's move to extend the offer came after it purchased 2.05 million Evolution shares on July 24, raising its direct ownership to 30.02%. Further acquisitions have increased its total to 59.8 million shares, equating to 31.56% of Evolution's issued share capital. Additionally, a related party has economic exposure to 4.04 million shares via cash-settled total return swaps, bringing Candle Lake's overall financial exposure to about 32.04%.
The €63.02-per-share offer means that the 189.4 million shares outstanding are valued at close to €11.94 billion. This offer pertains to the 129.6 million shares not already owned or controlled by Candle Lake or its affiliates, with a total transaction value of roughly €8.17 billion. The offer price corresponds to Evolution's closing share price on July 24, but represents a 5.7% discount compared to the company's closing price on August 12 and is 3.3% below the latest 20-day volume-weighted average price. Candle Lake made it clear that the bid is purely a regulatory obligation, stating, "The Offer is, however, not motivated by any intention to acquire all outstanding shares in Evolution."
The investor has stated it does not plan to implement significant changes to Evolution's operations, management, workforce, or locations. However, if its ownership surpasses 90%, Candle Lake indicated it would pursue compulsory acquisition proceedings and consider delisting Evolution from Nasdaq Stockholm.
The offer document received approval from the Swedish Financial Supervisory Authority and was published on August 14. The acceptance period will be from August 17 to September 15, with expected settlement commencing around September 23. Candle Lake confirmed the bid is fully financed and that all necessary regulatory approvals are already in place.
This mandatory offer follows the recent release of Evolution's second-quarter 2026 financial results, where the company reported net revenue of €517.8 million, down 1.2% year-on-year, though revenue grew approximately 2.4% on a constant-currency basis. The company's quarterly EBITDA reached €341.0 million, corresponding to a 65.9% margin, with a net profit of €251.4 million. Management noted improved trading conditions in Europe, with returns to sequential revenue growth, alongside advances in cost management and cash generation. While the mandatory bid signals a pivotal change in Evolution's ownership landscape, Candle Lake emphasizes that its investment is primarily financial, not an indication of a full takeover effort.
