Evolution’s Board of Directors has urged its shareholders to reject the mandatory public takeover bid made by Kenneth Dart, through Candle Lake, considering that “it does not reflect the value of the company.”
On August 13, the company controlled by billionaire Kenneth Dart launched an offer for Evolution valued at SEK 131.7 billion (12 billion euros). This occurred after Dart exceeded the 30% regulatory threshold in the Swedish live casino gaming company.
The deadline to accept or reject the offer ended on September 15. However, Evolution’s Board of Directors has recommended that its shareholders not accept the proposal since the price undervalues the company and its prospects.
Why Evolution opposes Dart’s offer
Evolution argues that the proposal does not adequately reflect the value of the company. At a price of SEK 695 per share, the offer is below Evolution’s share price on August 13, when it reached SEK 733.30 per share.
Evolution’s Board of Directors has also taken into consideration the company’s current financial outlook, its prospects and long-term potential, as well as the actual price per share of the takeover bid.
Likewise, the Board has recalled that in previous statements Candle Lake had stated it had no interest in acquiring the entirety of Evolution and explained that the offer was made in response to a legal obligation.
“Following an evaluation, and in light of the discount compared to the company’s current share price, the Board of Directors considers that the offer does not reflect Evolution’s value,” they stated in a press release.
“In view of all this, the Board recommends that shareholders not accept the offer,” they stated.
Evolution’s share price rose slightly today (August 24) following the announcement. At the time of writing, the company’s share price had risen 0.6% at the opening, reaching SEK 825, which is well above the offer price of SEK 695.