Candle Lake Limited, an investment entity managed by Kenneth Dart based in the Cayman Islands, has initiated a mandatory public cash offer to acquire all remaining shares of Evolution AB. The proposed price stands at SEK695 ($72.89) per share, giving Evolution a valuation of approximately SEK131.7 billion based on its 189.45 million outstanding shares, excluding around 9.78 million treasury shares held by the company.
For shareholders not already under Candle Lake’s control, the total offer equates to about SEK90.1 billion. This action follows a series of market purchases that elevated Candle Lake's direct stake above the threshold necessitating a public bid under Swedish takeover regulations.
On July 24, Candle Lake escalated its ownership in Evolution to 30% by acquiring an additional 2,050,000 shares at a maximum price of SEK695 each. Currently, Candle Lake, along with its affiliated parties, possesses 59,798,619 shares of Evolution, making up approximately 31.56% of the company’s outstanding shares and triggering the need for a mandatory bid. Furthermore, Candle Lake has indirect exposure to about 4,037,416 shares, totaling around 32.04% exposure overall.
The stated offer price matches Evolution's closing price on July 24, 2026, which is about 1.6% above the 20-day volume-weighted average closing price (VWAP) on that date. However, this offer reflects a discount of approximately 5.7% compared to Evolution's closing price as of August 12, 2026, as well as a 3.3% discount in relation to the 20-day VWAP at that later date.
The acceptance window for shareholders is anticipated to be from approximately August 17 until September 15, 2026. If the bid is accepted, settlement is expected to commence on September 23, 2026.
Candle Lake has characterized Evolution as a well-managed and lucrative enterprise. The entity has stated it does not intend to make any major alterations to Evolution’s operations, management, employment terms, or locations. However, should it secure over 90% ownership, it would consider delisting Evolution from Nasdaq Stockholm and taking the company private.
The financing for the offer has been secured through available cash, liquid securities, and prearranged credit facilities. Candle Lake describes itself as a financial investment vehicle with no operational activities.
Commencing its share accumulation in Evolution in mid-2024, Candle Lake acquired 10.46 million shares over the six months leading to the mandatory offer. Nasdaq Stockholm mandates that Evolution’s board must provide a statement regarding the offer no later than two weeks before the acceptance period concludes.
Recently, Evolution canceled its proposed merger with Galaxy Gaming, a provider of table games and casino technology. CEO Martin Carlesund stated that while the merger was not essential to their operations, Evolution would continue to collaborate with Galaxy Gaming under their existing business relationship.
The announcement comes in the wake of a near suspension of Evolution's license in the UK due to a Gambling Commission finding that the company's live casino games were offered on unlicensed websites accessible to UK consumers.
