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State of Play’s TL;DR
- Evolution has rejected Candle Lake’s mandatory takeover offer.
- It said the proposal did not reflect the company’s fair market value.
Evolution Gaming’s board has turned down a mandatory offer of $13.8 billion from Candle Lake, the investment firm owned by billionaire Kenneth Dart.
The company said it weighed the current share price, its strategic and financial position, and its expected future development before concluding the proposal was too low.
The bid was triggered after Candle Lake disclosed a 30% holding in the live casino supplier.
Board says the offer undervalues Evolution
The offer valued Evolution at $13.8 billion. Evolution’s board said the proposal does not reflect the company’s “fair market value.”
The company said its assessment considered several factors. Those included Evolution’s current share price and financial position.
That response makes clear the board is not recommending shareholders accept the offer as presented.
Why Candle Lake had to make the bid
Candle Lake was required to make the offer after disclosing a 30% stake in Evolution. InterGame said the bid was made under a mandatory offer obligation rather than as part of an expressed plan.
Evolution said Candle Lake had stated that the offer “is not motivated by any intention to acquire all outstanding shares in Evolution.” It was instead made pursuant to that mandatory obligation.
The development is notable because Evolution is one of the gambling industry’s best-known online casino suppliers.
Based on reporting by Jonny Whitfield for InterGame.
