Evolution, a leading provider of live casino games, may be on the brink 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 who exceed the 30% ownership threshold are obligated to either make a formal offering within four weeks or reduce their holdings.
Dart, a billionaire from the Cayman Islands, has been investing in Evolution for some time and has now heightened his involvement with this latest share increase. This event coincides with a challenging period for Evolution, as the company is under scrutiny from regulators in various markets. Recently, Evolution withdrew its bid to acquire Galaxy Gaming due to complications with US regulatory authorities.
Moreover, the company is contending with accusations that its games were used inappropriately in several jurisdictions where they are restricted. Evolution has largely dismissed these claims, opting to fight back through legal channels.
At this point, Dart's intentions remain unclear; he might be looking to take Evolution private or simply adjusting his stake to align with Swedish regulations. Should Candle Lake choose to initiate a mandatory offer, Swedish law mandates that the bid price must at least match the highest price paid for Evolution shares during a recent acquisition period, which is estimated to be around SEK 700 (€63.75) per share.
