Candle Lake, the investment firm owned by billionaire Kenneth Dart, has submitted a SEK131.7bn (£10.2bn) offer to take Evolution private.
The bid for the live casino and slots powerhouse values the Stockholm-listed business at SEK695 per share. Evolution currently trades at SEK733 a share, giving it a market cap of SEK138.8bn.
The stock in the 20-year-old supplier has risen 40% over the past six months, although it is down 9% compared to this time last year.
Candle Lake snapped up just over two million shares in Evolution for SEK695 each on 24 July, in the process passing the 30% ownership benchmark.
Under Swedish law, once an investor holds more than 30% of a listed company’s stock, it must make a mandatory bid for the rest of the business.
Candle Lake has now made a bid, in which it would acquire all 189,447,977 outstanding shares.
The investment vehicle said SEK695 per share reflects the closing price on 24 July, when Candle Lake passed the threshold. Candle Lake has since upped its holding to 31.56%.
The group said an offer document would be made public “on or around 14 August”, while the acceptance period for the offer will open on or around 17 August and close on or around 15 September.
The transaction would be financed via a combination of Candle Lake’s existing cash, liquid securities and credit facilities.
Candle Lake has confirmed it’s conducted a “limited due diligence review of Evolution for the purpose of confirming certain information as part of the execution of the offer”. Roschier Advokatbyrå is acting as Candle Lake’s legal adviser.
Cayman Islands-based Dart, 71, is estimated by Forbes to have a net worth of $3.7bn.
His family, which founded food and beverage packaging company Dart Container, made their fortune from plastic and disposable cups, growing into the largest manufacturer of foam cups and single-use food packaging in the world.
He famously renounced his US citizenship in 1994 and moved to Cayman Islands, where he is widely considered the largest private land owner in Grand Cayman. The reclusive billionaire has not spoken to the media since 1993.
Dart, who tends to invest in ‘sin stocks’ such as tobacco and gambling, also owns almost 30% of Flutter Entertainment, having steadily increased his shareholding in the FanDuel parent.
Also today, 13 August, he purchased a 0.6% stake in Hacksaw Gaming, triggering a 8% jump in the slots supplier’s shares in Stockholm.
On the Evolution bid, a Candle Lake statement read: “Candle Lake is a long-term investor and views its shareholding in Evolution as a financial investment in a well-managed, highly profitable business.
“Evolution has, since its founding in 2006, developed into the global market leader in B2B live casino solutions, and Candle Lake recognises the quality of Evolution’s management and the strength of its operational platform.
“The offer is, however, not motivated by any intention to acquire all outstanding shares in Evolution.
“Candle Lake’s plans for the future business and general strategy of Evolution, as described above, do not currently include any material changes with regard to Evolution’s future operations. The offer will not affect Candle’s operations.
“Candle Lake also has no plans to implement any material changes with regard to Evolution’s operational sites, or Evolution’s and Candle Lake’s management and employees, including their terms of employment.”
Candle Lake said regulatory and closing conditions would be required to be secured prior to any transaction completing.
Evolution declined to comment when approached by EGR.
Last October, Evolution alleged rival supplier Playtech was behind a short seller report published in November 2021.
The report, which was based on an investigation by private intelligence agency Black Cube, contained “highly inflammatory and knowingly false claims”, according to Evolution.
There is a lawsuit sitting in New Jersey courts at the time of writing.
In July, Evolution shelved plans to acquire Galaxy Gaming, two years after a $85m deal to acquire the US supplier was agreed.
The post Candle Lake submits SEK132bn offer to take Evolution private first appeared on EGR Intel.
Kenneth Dart’s investment vehicle tables bid having passed mandatory offer threshold upon building a 30% stake in the “well-managed, highly profitable” live casino giant last month
The post Candle Lake submits SEK132bn offer to take Evolution private first appeared on EGR Intel.