Kenneth Dart's investment vehicle Candle Lake has launched a mandatory cash offer to acquire all outstanding shares in Evolution at SEK695 per share. The offer was triggered automatically after Dart's stake in the live casino technology provider crossed 30%. The bid values Evolution at SEK131.7bn (£10.21bn).
Candle Lake now controls 31.56% of Evolution, which is listed on Nasdaq Stockholm. Including total return swaps, its financial exposure stands at 32.04%. The offer price of SEK695 per share sits 5.7% below the closing price on 12 August (SEK737.2), the last trading day before the announcement.
This is not a full takeover. Candle Lake stated explicitly that it views its holding as a long-term financial investment in a well-managed business. 'The offer is not motivated by an intention to acquire all shares in Evolution,' the filing says. The firm does not plan to change Evolution's strategy, locations, management or employment terms.
The offer document is due on 14 August, with acceptance running from 17 August to 15 September and settlement starting 23 September. If Candle Lake secures over 90% of shares — unlikely at the current price — it would trigger a compulsory buyout of the remainder and delist Evolution from Nasdaq Stockholm.
A similar situation could arise at Flutter Entertainment. Dart holds around 29% of the owner of Sky Bet, Paddy Power, Betfair and FanDuel. If that stake crosses 30%, Irish Takeover Rules would force a mandatory offer. Yesterday's low price signals that Dart has no intention of acquiring either company outright.
Evolution shares rose nearly SEK10 to SEK747.4 in after-hours trading. Investors are unlikely to accept an offer priced below the market.
