Evolution’s board has recommended that shareholders reject Candle Lake Limited’s mandatory cash offer, putting the Sweden-listed gambling group at odds with its largest shareholder’s attempt to meet a legal takeover obligation.
The offer values Evolution at about SEK131.7bn (€11.9bn), with Candle Lake proposing SEK695 for each share. The bid followed Kenneth Dart’s investment vehicle increasing its holding above 30% in July, a threshold that triggers a mandatory offer for the remaining shares under Swedish law.
The acceptance period began on 17 August and is expected to close around 15 September. Evolution moved to oppose the proposal shortly after its launch, citing the gap between the offer price and the company’s market value.
Board Points To Share Price Discount
Evolution said its board assessed the proposal against the company’s financial position, prospects and long-term potential. The SEK695 offer also stood below the company’s SEK733.30 share price on 13 August, when Candle Lake announced the bid.
The discount was even clearer against the SEK737.20 closing price recorded on 12 August. Evolution said the price therefore failed to represent what it considered a fair valuation.
“The board of directors also notes that Candle Lake has expressed that the offer is not motivated by any intention to acquire all outstanding shares in Evolution and that the offer is made pursuant to Candle Lake’s mandatory offer obligation,” the board said.
“Based on its assessment, and in light of the discount in offer compared to the company’s current share price, the board of directors considers that the Offer does not reflect the fair market value of Evolution.
“In view of the above, the board of directors recommends the shareholders to not accept the offer.”
Evolution has appointed Gernandt & Danielsson Advokatbyrå as its legal adviser in connection with the offer. Both sides have said the proposal would result in “no material changes” to either business.
Candle Lake Retains Wider Gambling Interests
Candle Lake’s position extends beyond Evolution. The investment vehicle owns 31.56% of Evolution and controls around 29% of Flutter Entertainment. It also holds a 0.6% interest in Hacksaw Gaming, which, like Evolution, is listed on Nasdaq Stockholm.
More recently, Dart’s investment vehicle acquired a 5.8% stake in US gambling operator DraftKings, adding another major listed gambling company to its holdings.
Despite Candle Lake’s substantial position in Evolution, the offer does not currently signal an intention to acquire the entire company. The investor previously stated that it did not intend to pursue a full takeover unless its ownership reached at least 90%.
That threshold remains relevant because Candle Lake said in its original offer that a stake above 90% would allow it to seek compulsory acquisition of the remaining shares. It also said it would seek to delist Evolution from Nasdaq Stockholm if that level were reached.
Evolution’s rejection therefore leaves the offer open to shareholders while keeping the possibility of a future change in ownership. On 24 August, the company’s shares traded at SEK825 at the time reported, 0.6% above the opening price and well above Candle Lake’s SEK695 proposal.
Source:
“Evolution board of directors swiftly tells shareholders to reject Candle Lake offer”, sbcnews.co.uk, August 24, 2026
The post Evolution Rejects Candle Lake Takeover Offer first appeared on RealMoneyAction.com.