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Candle Lake Limited, the investment vehicle controlled by billionaire Kenneth Dart, has launched a mandatory public cash offer to acquire all outstanding shares in Swedish gaming technology group Evolution AB.

The offer is priced at SEK 695 per share and values Evolution at approximately SEK 131.7 billion based on the company’s total outstanding shares.

The mandatory offer follows Candle Lake’s increase in its stake in Evolution to more than 30%, a threshold that triggers a mandatory takeover bid under Swedish regulations.

Offer Comes at a Discount to Evolution’s Market Price

While the offer represents a significant overall valuation, SEK 695 per share was below Evolution’s recent market price.

Evolution closed at SEK 737.20 on August 12, meaning Candle Lake’s proposal represented a discount of approximately 5.7% to that closing price. At the same time, the offer was around 1.6% above the 20-day volume-weighted average price calculated through July 24.

The offer covers approximately 129.6 million shares that are not already owned or controlled by Candle Lake and related parties, putting the value of the shares subject to the offer at roughly SEK 90.1 billion.

Candle Lake Says It Does Not Intend to Take Full Control

Despite the size of the offer, Candle Lake has stated that it does not intend to acquire Evolution outright.

The company described the proposal as a consequence of crossing Sweden’s mandatory bid threshold rather than a strategic attempt to take control of the gaming supplier.

Candle Lake has also indicated that its investment in Evolution is intended to remain long-term and that it does not currently plan to change the company’s operations or management.

Evolution Remains a Major iGaming Technology Provider

Evolution is one of the world’s largest suppliers of live casino and online gaming technology, with products distributed through licensed operators across numerous regulated markets.

The company operates a portfolio that includes Evolution, NetEnt, Red Tiger, Ezugi, Big Time Gaming and Nolimit City, among other brands.

Candle Lake’s growing position therefore gives Dart significant exposure to the global iGaming technology sector.

Offer Period Runs Until September

The acceptance period for the mandatory offer is scheduled to run from August 17 through September 15, 2026, subject to the applicable regulatory conditions.

The transaction does not necessarily mean that Evolution will be taken private. Instead, the offer allows Candle Lake to comply with Swedish takeover rules after exceeding the 30% ownership threshold.

The development will nevertheless be closely watched by Evolution investors, particularly because Candle Lake has continued to increase its stake while Evolution has been conducting share buybacks. Evolution reported the acquisition of nearly 1 million of its own shares during August 10–14.

Source: https://news.cision.com/candle-lake-limited/r/candle-lake-limited-announces-a-mandatory-public-cash-offer-to-the-shareholders-of-evolution-ab–pub,c4382739