Kenneth Dart’s investment vehicle Candle Lake has launched a mandatory cash offer for Evolution, valuing the Swedish online casino supplier at approximately SEK 131.7 billion (€11.8 billion). Evolution shareholders are being offered SEK 695 in cash for each share. However, Candle Lake says the offer is intended to meet an obligation under Swedish takeover law and is not motivated by plans to acquire the entire company.
Candle Lake is offering Evolution shareholders SEK 695 in cash per share.
The offer values all outstanding Evolution shares at approximately SEK 131.7 billion.
Candle Lake’s offer for the shares it does not control is worth approximately SEK 90.1 billion.
The price represents a 5.7% discount to Evolution’s closing price on 12 August.
The offer became mandatory after Candle Lake crossed Sweden’s 30% voting-rights threshold.
Candle Lake says it views Evolution as a long-term financial investment and does not intend to acquire the entire company.
The acceptance period is scheduled to run from 17 August until 15 September 2026.
According to Candle Lake’s official mandatory-offer announcement, Evolution shareholders can tender their shares for SEK 695 each.
The price values Evolution’s 189.4 million outstanding shares at approximately SEK 131.7 billion. Because Candle Lake already holds 59.8 million shares, the offer values the remaining shares outside its control at approximately SEK 90.1 billion.
Evolution develops and licenses online casino content and technology, with a particular focus on live dealer games. The Nasdaq Stockholm-listed supplier serves more than 800 operators across Europe, Asia, and the Americas.
Candle Lake acquired another 2.05 million Evolution shares on 24 July, taking its direct position to approximately 30.02% of the company’s total shares and voting rights.
Crossing 30% triggered a mandatory offer obligation under the Swedish Act on Public Takeovers. Candle Lake consequently had four weeks to offer to purchase the remaining shares or reduce its voting position below the threshold.
The investment company currently holds and controls 59.8 million shares, equivalent to approximately 31.56% of Evolution’s outstanding shares. An affiliated entity also has financial exposure to another 4.04 million shares through cash-settled total return swaps, taking Dart’s overall economic exposure to approximately 32.04% of Evolution’s issued shares.
Although the transaction is formally classified as a takeover offer, Candle Lake has expressly said that it is not seeking to acquire every outstanding Evolution share.
Candle Lake said in its official offer announcement:
Candle Lake is a long-term investor and views its shareholding in Evolution as a financial investment in a well-managed, highly profitable business.
The company also stated it has no plans to make material changes to Evolution’s operations, management, workforce, or employment conditions. It also described Evolution as the global market leader in B2B live casino solutions.
The offer is therefore materially different from an agreed acquisition in which a buyer seeks operational control. It was initiated because Candle Lake crossed the statutory ownership threshold rather than through a negotiated agreement with Evolution’s board.
The SEK 695 offer matches Evolution’s closing share price on 24 July, immediately before Candle Lake disclosed that it had crossed the mandatory-bid threshold. It also represents a 1.6% premium to the average trading price over the preceding 20 trading days.
However, Evolution shares subsequently traded above the offer price. The bid represents a 5.7% discount to the SEK 737.20 closing price recorded on 12 August and a 3.3% discount to the subsequent 20-day volume-weighted average.
That discount may reduce the incentive for shareholders to accept the offer unless Evolution’s market price falls before the acceptance period closes. Evolution’s board is expected to publish its formal opinion on the bid no later than two weeks before the acceptance deadline.
Dart began building his position in Evolution through open-market purchases in mid-2024. His gaming investments also include substantial direct and derivative-backed exposure to Flutter Entertainment.
Flutter recently completed its London Stock Exchange delisting, leaving the New York Stock Exchange as its primary market. The operator was also among the largest weekly decliners covered in Ace Alliance’s August 3–7 iGaming stock snapshot.
Dart’s holdings in both businesses give him significant financial exposure to two different parts of the gambling industry: Evolution’s B2B casino content operation and Flutter’s international portfolio of consumer betting and gaming brands.
The offer document is scheduled for publication on 14 August, with the acceptance period running from 17 August until 15 September. Settlement is expected to begin on 23 September, subject to any necessary regulatory approvals.
Candle Lake has not established a minimum acceptance threshold. This means the offer could be completed even if only a limited number of Evolution shareholders tender their shares.
If Candle Lake’s ownership were ultimately to exceed 90%, it would be able to begin compulsory redemption proceedings for the remaining shares and seek Evolution’s delisting from Nasdaq Stockholm. Nevertheless, its stated intention is to remain a long-term financial investor rather than acquire the entire supplier.
The principal questions will now be how Evolution’s board assesses the discounted offer and whether any shareholders choose to sell despite the market price having moved above SEK 695.
