Candle Lake presents SEK132 billion offer to privatize Evolution

Candle Lake, the investment fund owned by billionaire Kenneth Dart, has presented a SEK131.7 billion offer to privatize Evolution. This offer values the company, which is listed on the Stockholm Stock Exchange, at SEK695 per share. Currently, Evolution trades at SEK733 per share, with a market capitalization of SEK138.8 billion. Shares in this 20-year-old provider have risen 40% in the last six months, although they have fallen 9% compared to the same period last year.

Candle Lake's Offer and Legal Requirements

On July 24, Candle Lake acquired just over two million shares of Evolution at SEK695 each, thus exceeding the 30% ownership threshold. According to Swedish regulations, any investor holding more than 30% of a company’s shares must make a mandatory offer for the rest of the company. Candle Lake has continued to increase its stake to 31.56%, and now seeks to acquire around 130 million remaining shares.

The offer documentation will be available “around August 14”, while the acceptance period will open on August 17 and close on September 15. The transaction will be financed through existing cash, liquid securities, and credit lines from Candle Lake. The group has conducted a "limited due diligence review" to confirm certain information prior to submitting the offer.

Kenneth Dart’s Profile and Investment Strategies

Kenneth Dart, a resident of the Cayman Islands and owner of Candle Lake, has an estimated net worth of $3.7 billion, according to Forbes. His family made their fortune with Dart Container, the world’s leading manufacturer of disposable food and beverage packaging. Dart, known for his focus on stocks in sectors like tobacco and gaming, also owns nearly 30% of Flutter Entertainment.

On August 13, Dart purchased 0.6% of Hacksaw Gaming, resulting in an 8% increase in shares for the slot provider in Stockholm.

Statements and Future Plans from Candle Lake

In a statement, Candle Lake expressed its intention to maintain its investment as a long-term shareholder in Evolution, emphasizing the quality of management and the company’s profitability. "Evolution has developed a leading position in B2B live casino solutions since its founding in 2006," the group said. No material changes to Evolution’s operations or employment conditions for its staff are anticipated.

Candle Lake noted that regulatory and closing conditions must be secured before completing any transaction. Evolution declined to comment on the matter. It is worth remembering that last October, Evolution accused Playtech of being behind an offensive report from a private agency.

In July, Evolution decided to cancel the acquisition of Galaxy Gaming, following an $85 million agreement made two years ago.