Candle Lake submits offer after its shareholding triggers mandatory takeover bid but says it is not motivated to take full ownership
Evolution’s largest shareholder, Candle Lake, has made an offer to acquire all of the remaining shares in the company for SEK695 per share.
The offer is 8 per cent below the price of Evolution’s shares, which were trading at SEK754.40 per share at the time of publication, but represents a premium of 1.6 percent compared to the volume-weighted average trading price of SEK683.8 during the 20 trading days up to and including 24 July, the last day of trading prior to the announcement of Candle Lake’s obligation to launch the mandatory takeover offer.
The offer values Evolution at approximately SEK131.7 billion (approx. €11.97 billion).
Candle Lake currently owns a 31.56 per cent stake in Evolution and describes the company as a well-managed, highly profitable business, adding that its offer is not motivated by any intention to acquire all outstanding shares in Evolution, or to materially change Evolution’s future operations.
The acceptance period for the offer runs from 17 August to 15 September, with completion solely conditional upon receipt of all necessary regulatory, governmental or similar approvals.
Candle Lake is a Cayman Islands-based investment firm ultimately controlled by Kenneth Dart.
In the event that Candle Lake acquires 90 per cent or more of Evolution’s shares, it will move to delist the company from Nasdaq Stockholm.
Shares in Evolution AB (STO:EVO) were trading 2.25 per cent higher at SEK754.40 per share in Stockholm Thursday.