Evolution's board has urged shareholders to reject the mandatory takeover offer from Candle Lake Limited, the investment vehicle of Kenneth Dart. The offer was triggered on 13 August after Candle Lake raised its stake in the live casino supplier to 30% in July by acquiring an additional 2,050,000 shares. Under Swedish law, any investor holding 30% or more must launch a bid for the remaining equity. The offer values Evolution at approximately SEK131.7 billion.
In a statement, the board said the bid 'does not reflect the fair market value of Evolution'. The company believes Candle Lake is fulfilling a regulatory requirement rather than pursuing an actual takeover or operational shift. 'The board notes that Candle Lake has stated that its plans regarding Evolution's future strategy following the offer do not include any material changes to the company's business,' the statement said.
Candle Lake has previously indicated that if its stake exceeds 90%, it would delist Evolution from Nasdaq Stockholm and take the company private. So far those plans have met resistance.
Evolution has faced a turbulent period. The UK Gambling Commission came close to suspending the supplier's licence after its games appeared on unlicensed sites in Britain. Evolution paid £4.75 million for failures in AML controls and client due diligence. In July, its $85 million acquisition of Galaxy Gaming collapsed after the closing deadline expired and Evolution terminated the agreement. Following the opening bell in Stockholm, Evolution shares rose 0.51% to SEK824.20.
