Evolution could be moving closer to a significant ownership shift, and possibly going private, following recent share trading by Cayman Islands-based billionaire businessman and investor Kenneth Dart.
Dart, whose family business Dart Container owns the Solo Cup Company, increased his stake in the Swedish iGaming supplier as of 24 July to 30.02% (59,798,619 shares) through Candle Lake Ltd, which he owns and controls.
According to Chapter Three of the Swedish Act of Public Takeovers, Dart and Candle Lake are now legally obligated to submit a takeover bid for Evolution. Candle Lake now has four weeks to either submit a formal acquisition bid for the supplier or reduce its stake to below 30%.
However, a competitive offer isn’t necessary. All the law requires is that the bid match the highest-priced Evolution shares that Candle Lake has purchased over the past six months.
If a proposed takeover bid is successful, there’s also the possibility of Dart taking Evolution private, further changing the dynamics of the iGaming supplier.
Notably, Dart’s gambling interests extend beyond Evolution, as Candle Lake also holds a 27% stake in Flutter Entertainment, but his interest in the supplier may have changed following its recent developments.
Evolution’s UK settlement
The takeover speculation follows Evolution’s recent settlement with the Gambling Commission (GC) over anti-money laundering shortcomings, as the company was found to be supplying its services to six unlicensed websites accessible to UK players.
A suspension of Evolution’s UK licence was even considered by the GC, but now a £4.75m settlement has been reached, one of the company’s biggest regulatory situations appears to have been resolved.
Earlier this month, Evolution explained its team fully cooperated with the GC during the review process, that it continuously strengthens its technical measures and refines its procedures, such as enhanced ring-fencing measures, and that it remains committed to compliance investment and constructive collaboration with regulators.
Chief Executive Officer Martin Carlesund said: “At Evolution, we always want to do what is right, and it is not acceptable that six unlicensed sites offered Evolution content in the regulated UK market.
“We do not want traffic from unlicensed operators and will always move quickly to address any such situation. We welcome the conclusion of the review and remain focused on continuing to supply our world-leading games to licensed operators in the UK.”
This action in the UK will surely play a factor in Candle Lake’s potential evaluation of Evolution for a takeover bid, if one is submitted over the next month.
