Gaming technology group Evolution has urged shareholders to not accept a cash offer of about SEK131.7 billion (US$13.9 billion), after investment group Candle Lake – led by billionaire Kenneth Dart – increased its holdings in the company sufficiently to make the takeover bid mandatory.
In a Monday note, Evolution noted that Candle Lake had crossed the 30% holding threshold necessary for the mandatory bid, and was offering SEK695 (US$73) per share, payable in cash. Evolution notes that Candle Lake published an offer document on 14 August, with the acceptance period commenced on 17 August and expected to run until 15 September.
After evaluating the offer, Evolution’s board indicated that “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.”
