Candle Lake Limited, controlled by investor Kenneth Dart from the Cayman Islands, has initiated a mandatory public cash bid to acquire all outstanding shares of Evolution AB. The proposed offer is set at SEK 695 ($72.89) per share, placing the company's valuation at approximately SEK 131.7 billion, based on 189.45 million outstanding shares, excluding around 9.78 million treasury shares held by Evolution.
For shareholders outside of Candle Lake's control, this total bid approximates to SEK 90.1 billion. This action comes after Candle Lake’s recent acquisitions elevated its direct stake to exceed the threshold for a mandatory bid under Swedish takeover laws.
On July 24, Candle Lake boosted its ownership in Evolution to 30% by purchasing an additional 2,050,000 shares at SE 695 each. Currently, Candle Lake and its affiliated entities hold 59,798,619 shares of Evolution, translating to roughly 31.56% of all outstanding shares, thereby triggering the requirement for the takeover offer. Additionally, Candle Lake has indirect economic exposure to roughly 4,037,416 shares, raising its total exposure to about 32.04%.
Candle Lake indicated that the offer price aligns with Evolution's closing share price on July 24, 2026, reflecting a premium of roughly 1.6% over the 20-day volume-weighted average closing price (VWAP) on that date. Nevertheless, this offer price is about 5.7% lower than Evolution’s closing price on August 12, 2026, and represents a 3.3% discount against the 20-day VWAP at that time.
The period for shareholders to accept the offer is expected to begin on August 17 and conclude on September 15, 2026, with settlements anticipated to start on September 23, 2026.
Candle Lake characterized Evolution as a well-managed, profitable entity, asserting it does not intend to make significant operational, management, or employment changes. However, should it secure more than 90% ownership, it would pursue delisting Evolution from Nasdaq Stockholm to transition it into a private entity.
The takeover bid is fully financed through available cash, liquid assets, and secured credit facilities. Candle Lake described itself as a financial investment vehicle without operational functions.
Candle Lake's acquisition journey commenced in mid-2024, with the entity accumulating a total of 10.46 million shares over the six months leading to this mandatory offer. Nasdaq Stockholm regulations require Evolution’s board to respond to the offer by issuing a public statement at least two weeks before the acceptance period ends.
Recently, Evolution canceled its intended merger with Galaxy Gaming, a deal which CEO Martin Carlesund stated was not critical. Instead, he emphasized the company would continue its existing partnership with Galaxy Gaming.
This move follows a near suspension of Evolution’s license in the UK, prompted by the Gambling Commission's findings that its live casino games were being offered on unlicensed websites accessible to UK consumers.
