Evolution, renowned for its live casino games, is facing the possibility of a takeover as investor Kenneth Dart has increased his stake in the company to 30.02% via his firm, Candle Lake Limited. Under Swedish regulations, shareholders exceeding a 30% ownership threshold are mandated to make a formal offer within four weeks or reduce their stake.
Dart, a billionaire investor from the Cayman Islands, has been a shareholder in Evolution for several years and has now raised his holdings at a critical time for the company. Evolution is currently grappling with significant hurdles, including a regulatory review in multiple markets. Recently, it withdrew its application to acquire Galaxy Gaming amid challenges from US regulators.
Additionally, the company is handling allegations regarding its games being used unlicensed in a few restricted regions. Evolution has largely dismissed these allegations and is actively contesting them through legal measures.
At this juncture, Dart's intentions remain uncertain. It is unclear whether he plans to take Evolution private or if he is merely adjusting his ownership to comply with Swedish law. If Candle Lake proceeds with a mandatory offer, Swedish law stipulates that the bid price must be at least equal to the highest price paid for Evolution shares in the recent acquisition period, estimated to be around SEK 700 (€63.75) per share.
