Dart’s Evolution Stake Triggers $13.8B Offer
Kenneth Dart’s investment company Candle Lake has submitted a $13.8 billion takeover offer for Evolution after increasing its stake in the live casino supplier.
Candle Lake passed the 30% ownership threshold in late July. Under Swedish rules, an investor that reaches this level must make an offer for the remaining shares.
However, the offer is not expected to lead to a full takeover. Its price represents a 1.6% premium over Evolution’s 20-day volume-weighted average share price before July 24, but remains below the company’s current market price. Candle Lake stated:
We do not intend to acquire all remaining shares in Evolution.
The company described its Evolution stake as a long-term financial investment. It also praised the supplier’s management, profitability and position in the B2B live casino market.
Candle Lake said it does not plan to make major changes to Evolution’s operations or business strategy. Analysts therefore view the offer mainly as a step required under Swedish takeover rules.
If Evolution rejects the proposal, Candle Lake could continue buying shares for another year without having to submit a new takeover offer. Dart is also a major investor in Flutter Entertainment, the parent company of FanDuel.
