Kenneth Dart Bids $13.8 Billion for Evolution Below Market Price

Kenneth Dart's Cayman Islands vehicle Candle Lake offered 695 Swedish kronor ($73) in cash for each Evolution share on Aug. 13, less than the stock was fetching on the market.

The bid values Evolution at 131.7 billion kronor ($13.8 billion), which is 5.7% below its Aug. 12 close of 737.2 kronor, according to Reuters. Evolution streams live dealer casino games from its studios to more than 800 operators, and the offer covers the roughly 70% of the company Dart does not already control.

Candle Lake Says It Does Not Want Every Share

Candle Lake bought 2,050,000 Evolution shares on July 24, lifting its holding to 30.02%. That crossed the threshold in Sweden's takeover act, which forces a buyer past 30% of the votes to bid for the rest of the company within four weeks or sell back below the line, the firm disclosed that day.

Candle Lake said it made the bid to discharge that obligation and does not intend to acquire all of Evolution's shares, Reuters reported. Evolution declined to comment. Its shares slipped about 1% in Stockholm.

The bid does seem to imply that Candle Lake would like to own more shares in Evolution.

Analysts at Jefferies wrote that in a note, according to Reuters.

The company noted it would seek to delist Evolution from Nasdaq Stockholm and go private if its ownership exceeded 90%.

Acceptance Period Runs to Sept. 15

An offer document was expected on or around Aug. 14, with the acceptance period set to run from about Aug. 17 to Sept. 15 and settlement around Sept. 23, Candle Lake said. Nasdaq Stockholm has moved Evolution to observation status, its label for companies subject to a public takeover offer, according to multiple industry reports.

FairGambling covered the moment Dart's stake passed 30% in July, three days after Evolution walked away from its $85 million Galaxy Gaming takeover.

Evolution's board has not said what it thinks of the price. Under the Swedish takeover rules it must publish that opinion no later than two weeks before the acceptance period ends, putting the deadline around Sept. 1.