Evolution, a supplier of live casino games, may face a possible takeover as an investor Kenneth Dart raised his stake in the company to 30.02% through his company Candle Lake Limited.
According to the regulations in Sweden, shareholders who have ownership of more than the threshold of 30% are required to make an offer within four weeks or decrease their shareholding.
Dart, who is a billionaire from the Cayman Islands and has invested in Evolution for several years has increased his shareholding in the company.
This new development comes at a time when Evolution is facing several challenges with respect to regulatory review in various markets. For instance, Evolution recently withdrew its application to buy Galaxy Gaming after facing difficulties with US regulators.
The company is also reportedly working to deal with allegations that its games were in unlicensed usage in a few restricted countries. The company has rejected most of the allegations and is fighting back on the basis of legal filing.
At this moment, it is unclear whether Dart’s intention is to take the company private or simply make changes in his stake to comply with the regulations in Sweden.
If Candle Lake proceeds with a mandatory offer, Swedish regulations require bid price to be at least equal to highest price paid for Evolution shares during the recent acquisition period, estimated at around SEK 700 (€63.75) per share.
