Evolution's board has told shareholders to reject Candle Lake Limited's mandatory offer of SEK 695 ($73) per share. The board says the bid does not reflect fair market value.
Candle Lake is the investment vehicle of billionaire Kenneth Dart. It launched the offer on 13 August after crossing the 30% threshold in July that triggers a mandatory bid under Swedish law. Candle Lake now holds around 31.56% of Evolution's shares and votes.
The offer values Evolution at SEK 131.7 billion ($13.85 billion). That price matched the 24 July close when Candle Lake disclosed crossing the threshold, but by 12 August shares were trading at SEK 737.2, already 5.7% above the bid. On Tuesday morning Evolution traded around SEK 833, nearly 20% higher than the offer.
Evolution reported second-quarter revenue of €517.8 million, down 1.2% year-on-year but up 2.4% in constant currency, with EBITDA of €341 million and a 65.9% margin. The company bought back €303 million of its own shares during the quarter as part of a €2 billion programme.
Candle Lake began investing in Evolution in mid-2024 and describes the stake as a long-term financial investment. It says it has no plans to acquire all shares and will not change Evolution's operating model, management or headcount. If Candle Lake's stake exceeds 90%, it will initiate a compulsory buyout of remaining shares and delist from Nasdaq Stockholm.
The offer period closes 15 September. Settlement is expected around 23 September.
