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Evolution Board Turns Down Candle Lake's Takeover Offer

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Evolution Board Turns Down Candle Lake's Takeover Offer

Evolution AB's (EVO.ST) board on Monday rejected Candle Lake's mandatory takeover offer, saying it does not reflect the company's fair market value.

Candle Lake, a Cayman Islands-domiciled investment vehicle of businessman Kenneth Dart, on Aug. 13 launched a mandatory public cash offer of 695 kronor per Evolution share after accumulating a 30.02% stake in the Swedish online gambling company, triggering an obligation to make an offer for the remaining shares under Swedish takeover rules. The offer would have valued Evolution at 131.7 billion kronor.

The offer price matched Evolution's closing share price on July 24, the last trading day before Candle Lake announced the obligation for an offer, and represented a 5.7% discount to the Aug. 12 closing price of 737.2 kronor per share.

After evaluating the offer, the board urged shareholders to reject it, citing the company's current stock price, strategic and financial position, and prospects for future development. The acceptance period ends on Sept. 15.

The Evolution board noted that Candle Lake's takeover offer was made to fulfill the mandatory offer obligation rather than an actual intention to acquire all shares in the company. The board also noted Candle Lake's previously stated plans not to make any material changes to the company's future operations.

Evolution shares rose over 1% in early trading in Stockholm.

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