Evolution AB urges shareholders to reject Candle Lake takeover bid

The board of directors at Evolution AB has recommended that shareholders reject a mandatory cash takeover bid from Candle Lake Limited. The offer, spearheaded by billionaire Kenneth Dart, proposes SEK 695 per share, valuing the company at approximately SEK 131.7 billion.

Evolution’s board concluded that the offer does not adequately reflect the company’s fair market value. The board cited several factors in its decision, including the current share price, the company’s financial position, growth prospects, and long-term strategic potential. Notably, the proposed price of SEK 695 was lower than the share price of SEK 733.30 recorded at the time the offer was made on August 13.

Candle Lake Limited’s obligation to make this offer was triggered after its stake in Evolution exceeded the 30% threshold required by Swedish law. While Candle Lake previously indicated it had no intention of acquiring Evolution outright, it noted that if its stake exceeds 90%, it may initiate compulsory acquisition proceedings and seek to delist the company from Nasdaq Stockholm. The acceptance period for the current offer is expected to run until approximately September 15.