Candle Lake Limited has initiated a mandatory cash offer for Evolution AB, placing the total value of the live casino supplier at about €11.94 billion. This move comes after Candle Lake increased its stake in the company, surpassing Sweden's mandatory takeover threshold. The investor is proposing €63.02 per share, following its acquisition of over 30% of Evolution's outstanding shares. Despite the nature of the mandatory bid, Candle Lake has clarified that it does not seek full control of Evolution.
As per Swedish takeover regulations, shareholders who acquire more than 30% of a listed company's voting rights are obligated to extend an offer to the remaining shareholders. Candle Lake crossed this threshold after acquiring 2.05 million Evolution shares on July 24, raising its ownership to 30.02%. Since then, additional purchases have increased its holding to 59.8 million shares, accounting for 31.56% of Evolution's issued share capital.
Additionally, a related party has economic exposure to 4.04 million shares through cash-settled total return swaps, bringing Candle Lake’s total financial exposure to around 32.04%.
The proposed price of €63.02 per share values Evolution's 189.4 million outstanding shares at approximately €11.94 billion. This offer pertains to 129.6 million shares not already owned by Candle Lake or its affiliates, equating to a transaction value of roughly €8.17 billion. The offer price reflects the closing share price of Evolution on July 24, when the obligation for the bid was triggered. It does, however, represent a 5.7% discount compared to the closing price on August 12 and is 3.3% below the latest 20-day volume-weighted average price. Candle Lake has stressed that this bid is merely a regulatory formality and not an attempt to acquire all outstanding shares in Evolution.
"The Offer is, however, not motivated by any intention to acquire all outstanding shares in Evolution," the company stated. Furthermore, Candle Lake indicated that there are no immediate plans to implement significant changes to Evolution's operations, management structure, workforce, or business locations. However, if ownership surpasses 90%, Candle Lake has indicated it would pursue compulsory acquisition proceedings and attempt to delist Evolution from Nasdaq Stockholm.
The Swedish Financial Supervisory Authority approved the offer document, which was published on August 14. The acceptance period for the offer will run from August 17 to September 15, with settlement expected to commence around September 23. Candle Lake confirmed that the offer is fully financed and has received all necessary regulatory approvals for the transaction.
This mandatory offer follows closely on the heels of Evolution's latest financial results, which were released for the second quarter of 2026. The company reported net revenue of €517.8 million, showing a decline of 1.2% year-on-year, though revenue increased by approximately 2.4% on a constant-currency basis. The quarterly EBITDA was €341.0 million, reflecting a 65.9% margin, and net profit amounted to €251.4 million. Management noted improving trading conditions in Europe, with revenue returning to sequential growth, alongside progress in cost management and cash generation.
The bid signifies a notable change in Evolution's ownership, though Candle Lake emphasizes that its investment is purely financial and does not precede a full takeover.
