The leadership team at Evolution has moved swiftly to urge shareholders to reject the bid of Kenneth Dart and Candle Lake to move the company private.
Dart’s had to make the move after Candle Lake increased its control in the iGaming supplier to over 30% when it purchased more than two million shares in July.
Nonetheless, the bid valued Evolution at around SEK 131.7bn, a valuation that was widely considered below market value and one which represented a discount on the firm’s market cap.
In announcing its bid, Candle Lake had sought to make clear that it had no ambitions for a full takeover of Evolution although this was a possibility if the firm acquired 90% of its shares, a factor that added to Evolution’s eagerness to reject the bid.
An Evolution statement outlined: “The board of directors also notes that Candle Lake has expressed that the offer is not motivated by any intention to acquire all outstanding shares in Evolution and that the offer is made pursuant to Candle Lake’s mandatory offer obligation.
“Based on its assessment, and in light of the discount in offer compared to the company’s current share price, the board of directors considers that the Offer does not reflect the fair market value of Evolution.
“In view of the above, the board of directors recommends the shareholders to not accept the offer.”