Candle Lake Limited, an investment entity controlled by Cayman Islands-based investor Kenneth Dart, has announced a mandatory public cash offer to acquire all remaining outstanding shares of Evolution AB.
The offer price is set at SEK695 ($72.89) per Evolution share, valuing the company at approximately SEK131.7 billion, based on 189.45 million outstanding shares (excluding about 9.78 million treasury shares held by Evolution).
For shareholders not already controlled by Candle Lake, the total offer represents a value of roughly SEK90.1 billion.
The move follows recent market purchases that pushed its direct holding above the mandatory bid threshold mandated by Swedish takeover regulations.
Offer price and acquiring shares
On 24 July, Candle Lake increased its stake in Evolution to 30%, by acquiring an additional 2,050,000 shares at a maximum price of SEK695 each.
As of the latest announcement, Candle Lake and its controlled parties hold 59,798,619 Evolution shares, representing around 31.56% of outstanding shares, meaning it had surpassed the mandatory bid threshold, triggering an offer.
The investment vehicle also holds indirect economic exposure to about 4,037,416 shares, bringing total exposure to approximately 32.04%.
Candle Lake stated the offer price corresponded to Evolution’s closing price on 24 July 2026, about 1.6% above the 20-day volume-weighted average closing price (VWAP) as of that date.
However, the offer price represented a discount of approximately 5.7% compared to Evolution’s closing price on 12 August 2026, and a 3.3% discount relative to the 20-day VWAP at that later date.
The acceptance period for shareholders is expected to run from about 17 August until 15 September 2026. Should the offer succeed, settlement is projected to begin on 23 September 2026.
Financing and intentions
Candle Lake has described Evolution as a well-managed and highly profitable company.
The entity also said it had no plans to implement significant changes to Evolution’s operations, management team, employment terms, or operational sites.
However, the company noted that if it obtained ownership exceeding 90%, it would seek to delist Evolution from Nasdaq Stockholm and take it private.
The offer has been fully financed through its available cash, liquid securities, and committed credit facilities. Candle Lake described itself as a proprietary financial investment vehicle without operational activities.
An Evolution of an acquisition
Candle Lake began accumulating shares in Evolution in mid-2024. Over the six months prior to the mandatory offer, it had acquired a total of 10.46 million Evolution shares.
According to Nasdaq Stockholm’s takeover rules, Evolution’s board must issue a statement regarding the offer no later than two weeks before the acceptance period closes.
Only last month, Evolution terminated its planned merger agreement with table games and casino technology provider Galaxy Gaming. CEO Martin Carlesund said at the time that the agreement wasn’t vital to the business but insisted that the operator will continue to work with Galaxy Gaming within the framework of its existing business relationship.
This comes after Evolution’s licence was nearly suspended in the UK following a Gambling Commission discovery that the company’s live casino games were being offered on unlicensed websites that were accessible to UK consumers.
Kathryn Evans
Kathryn covers bitesize breaking news with a primary focus on EMEA and US legislation. A proud North Walian, fluent Welsh speaker and lifelong Wrexham FC fan – long before Hollywood came calling.
Original article: https://igamingbusiness.com/finance/candle-lake-will-delist-evolution-nasdaq-stockholm-mandatory-cash-offer-accepted/
