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Candle Lake Limited has made a mandatory cash offer for Evolution AB at SEK 695 per share after its holding crossed the 30% Swedish takeover threshold. Yet Kenneth Dart owned Candle Lake says the bid is not intended to result in a full acquisition.
Good to Know
- The offer values Evolution at about SEK 131.7 billion.
- SEK 695 per share is 5.7% below the Evolution closing price on August 12.
- Candle Lake already owns 31.56% of Evolution and says it views the stake as a financial investment.
Mandatory Bid Follows 30 Percent Threshold
Candle Lake triggered Swedish mandatory bid rules after buying 2.05 million Evolution shares on July 24. The purchase lifted its direct holding to about 30.02%, above the threshold set under Swedish takeover law.
Further purchases have since taken the holding to 59,798,619 shares, equal to 31.56% of Evolution. A related party also has exposure to another 4,037,416 shares through cash settled total return swaps, taking combined financial exposure to about 32.04%.
The resulting SEK 695 cash offer values all 189,447,977 outstanding Evolution shares at roughly SEK 131.7 billion. Shares outside Candle Lake and related holdings carry an offer value of about SEK 90.1 billion.
Pricing offers little incentive compared with recent trading. SEK 695 matches the Evolution closing price on July 24 and sits 1.6% above the 20 day VWAP to that date. However, it stands 5.7% below the SEK 737.20 close on August 12 and 3.3% below the latest 20 day VWAP.
Candle Lake said:
“The Offer is, however, not motivated by any intention to acquire all outstanding shares in Evolution.”
The investor also said it has no current plans for material changes to Evolution operations, locations, management or employees. If ownership nevertheless exceeds 90%, Candle Lake intends to begin compulsory redemption proceedings and seek a Nasdaq Stockholm delisting.
The offer document is due around August 14. The planned acceptance period runs from August 17 through September 15, with settlement expected to start September 23. Candle Lake says the consideration is fully financed and believes customary regulatory approvals have already been received.
The bid arrives while Evolution deals with slower reported growth. Q2 2026 net revenue fell 1.2% year on year to €517.8 million, although constant currency growth reached an estimated 2.4%. EBITDA came to €341.0 million with a 65.9% margin, while quarterly profit increased to €251.4 million.
Evolution management said Europe returned to sequential growth during Q2, while cost control and cash flow improved.
FAQ
Why did Candle Lake have to bid for Evolution?
Its Evolution holding crossed the 30% mandatory bid threshold under Swedish takeover law on July 24.
How much is Candle Lake offering per Evolution share?
The cash offer is SEK 695 per share.
Does Candle Lake want to buy all of Evolution?
Candle Lake says no. It describes Evolution as a long term financial investment and says the offer exists because Swedish law requires it.
What happens if Candle Lake reaches 90% ownership?
It plans to seek compulsory redemption of the remaining shares and promote a delisting from Nasdaq Stockholm.
The post Candle Lake Makes SEK 131.7 Billion Mandatory Offer for Evolution appeared first on iGaming.org.