Billionaire Kenneth Dart Tables $13.8bn Evolution Bid He Probably Doesn’t Want
Swedish live casino giant Evolution AB has received a $13.8 billion acquisition offer from Candle Lake Ltd, a vehicle controlled by reclusive billionaire Kenneth Dart. But as Casino.org reports, very few observers expect this to result in a genuine change of ownership.
The offer is a direct consequence of Swedish securities law. When any investor’s stake in a publicly listed Swedish company nudges above 30%, they are legally obliged to make a formal acquisition offer to remaining shareholders. Candle Lake crossed that threshold in late July, triggering the mandatory bid.
The numbers make the lack of genuine intent fairly plain. The offer carries a premium of just 1.6% to Evolution’s volume-weighted average share price over the 20 trading days leading up to 24 July — and the bid price currently sits below where Evolution’s shares are actually trading. That is hardly the stuff of a serious takeover attempt.
Candle Lake itself made its position clear in a ten-page disclosure published on 13 August. The company stated it has no interest in owning Evolution outright, called its stake a long-term holding, and went out of its way to praise the company’s management. It also confirmed it is not looking to play an activist role. “Candle Lake’s plans for the future business and general strategy of Evolution do not currently include any material changes,” the document states.
Analysts broadly expect Evolution to reject the offer. If that happens, Swedish law allows Candle Lake to continue accumulating shares for another twelve months before any fresh bid would be required.
Dart, who relinquished his US citizenship in 1994, is estimated to be worth around $11.2 billion according to the Bloomberg Billionaires Index. He has historically favoured so-called sin stocks — tobacco and gambling names feature prominently in his portfolio. Beyond his 30% stake in Evolution, he holds an equivalent circa-30% interest in Flutter Entertainment, the parent company of FanDuel, through swap agreements. A recent regulatory filing indicates one of his holding companies entered a total return swap covering an additional 332,237 notional Flutter shares.
For UK players, Evolution is a major supplier of live dealer games to many of the online casinos you’ll find reviewed across our casino news section. The company’s ownership structure rarely affects the day-to-day product, but significant shareholder moves like this are worth keeping an eye on. You can learn more about how casino companies are structured in our guides.
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