Candle Lake, controlled by Kenneth Dart, acquired 2.05 million Evolution AB shares, pushing its stake to 30.02% and triggering a mandatory bid requirement under Swedish law with a four-week deadline.
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Kenneth Dart's Candle Lake crosses 30% threshold, triggering Evolution bid
Candle Lake, controlled by Kenneth Dart, acquired 2.05 million shares in Evolution AB, pushing its stake to 30.02% and triggering a mandatory bid requirement under Swedish law.
"The threshold was crossed through the share acquisition in combination with existing holdings being transferred from related companies," according to the disclosure notice filed with Swedish regulators. The related entities include Spring Mountain Investments and LBS Limited, all ultimately owned by Dart.
The purchase brings Candle Lake's total holding to 59.8 million shares, representing about 30.02% of the shares and votes in the live casino developer. In addition, LBS Limited holds a cash-settled equity swap agreement covering just over 4 million Evolution shares, giving Dart total economic exposure of more than 32%.
Under Swedish takeover rules, Candle Lake now has four weeks to either submit a mandatory offer for the remaining shares in Evolution or reduce its holding below the 30% threshold. The company trades on Nasdaq Stockholm under the ticker EVO and closed at 721.40 Swedish kronor Monday, up 3.8% on the news.
Dart, a billionaire investor known for his stakes in gaming and gambling companies, first emerged as a major shareholder in Evolution in August 2024 and has steadily increased his position. He also holds a large stake in Flutter Entertainment, the owner of FanDuel and Paddy Power.
The mandatory bid requirement puts Evolution in play at a time when the stock carries a consensus rating of Hold from 16 analysts, with an average price target of 63.50 euros. Goldman Sachs rates the stock a Sell with a 610-kronor target, while Kepler Cheuvreux maintains a Buy with an 830-kronor target.
For holders, the four-week deadline creates a potential arbitrage window as the market prices in a possible offer premium. Investors will watch whether Dart submits a formal bid or reduces his position before the regulatory deadline.
This article is for informational purposes only and does not constitute investment advice.
[1] Kenneth Dart's Candle Lake Crosses Mandatory Bid Threshold For Sweden's Evolution[2] Kenneth Dart’s Candle Lake Crosses Mandatory Bid Threshold For Sweden’s Evolution[3] Kenneth Dart crosses the mandatory bid threshold in Evolution - marketscreener.com[4] Stockholm exchange futures point to a positive open - marketscreener.com
