Candle Lake Limited, an investment entity overseen by Kenneth Dart, based in the Cayman Islands, has initiated a mandatory public cash offer for all remaining shares of Evolution AB. The proposed purchase price stands at SEK695 ($72.89) per share, marking a valuation of approximately SEK131.7 billion for the company, which is based on its 189.45 million outstanding shares, excluding around 9.78 million treasury shares held by Evolution.
For shareholders not already aligned with Candle Lake, the offer represents a total value of around SEK90.1 billion. This initiative follows a series of purchases that raised Candle Lake's direct ownership above the threshold required for mandatory bids as stipulated by Swedish takeover laws.
**Details of the Offer**
On July 24, Candle Lake increased its stake in Evolution to 30% by acquiring 2,050,000 additional shares at a price of SEK695 each. Following this announcement, Candle Lake and its controlled entities hold a total of 59,798,619 Evolution shares, accounting for about 31.56% of the company's outstanding shares, thus surpassing the mandatory bid threshold.
Candle Lake also maintains indirect economic exposure to about 4,037,416 shares, increasing its total exposure to approximately 32.04%. The investment entity stated that the offer price aligns with Evolution’s closing stock price on July 24, 2026, which is about 1.6% higher than the 20-day volume-weighted average closing price as of that date.
In contrast, the offer price marks a 5.7% discount compared to Evolution’s closing price from August 12, 2026, and is 3.3% lower than the 20-day VWAP recorded on that date.
The acceptance period for this offer is projected to last from August 17 to September 15, 2026, with settlements anticipated to start on September 23, 2026.
**Intended Operations**
Candle Lake has characterized Evolution as a well-managed, profitable company. They have also indicated there are no plans for significant alterations to the company’s operations, management structure, employee terms, or work sites. However, should their ownership exceed 90%, they would pursue the delisting of Evolution from Nasdaq Stockholm, transitioning the company into a private entity.
The financing for this offer is fully secured through their cash reserves, liquid securities, and established credit facilities. Candle Lake has reaffirmed its status as a proprietary financial investment vehicle, which does not engage in operational activities.
**Background on Acquisition Moves**
Candle Lake has been acquiring shares in Evolution since mid-2024, amassing a total of 10.46 million shares in the six months leading up to this mandatory offer. Under Nasdaq Stockholm's takeover regulations, Evolution's board must issue a response regarding this offer at least two weeks before the acceptance period concludes.
Recently, Evolution ended its planned merger agreement with Galaxy Gaming, a provider of table games and casino technology. CEO Martin Carlesund remarked that the merger was not essential for the business but emphasized their commitment to continue collaboration with Galaxy Gaming within their current business framework.
This announcement follows a serious incident where Evolution’s license was nearly suspended by the UK Gambling Commission due to findings that some of the company’s live casino games were being offered on unlicensed websites accessible to UK customers.
