Jul 28, 2026 | 3:03 am
Billionaire investor Kenneth Dart has reached a key ownership threshold in Evolution AB after increasing his stake beyond 30%, a move that activates Sweden’s mandatory takeover rules and forces a decision on the future of his investment in the gaming supplier.
A regulatory filing published on July 24 disclosed that Candle Lake Limited, an investment vehicle owned and controlled by the Cayman Islands-based businessman, acquired an additional 2.05 million Evolution shares. The purchase raised the combined holdings of Candle Lake and affiliated entities to 59,798,619 shares, representing approximately 30.02% of the company’s total shares and voting rights.
Under Sweden’s takeover framework, crossing the 30% threshold creates an obligation for the shareholder either to make an offer for the remaining outstanding shares or reduce its ownership below the triggering level. The acquisition started a four-week countdown that is expected to expire around August 21, 2026.
The filing emphasized that the disclosure itself does not constitute an offer to purchase Evolution shares.
Swedish Rules Create Limited Options
The Swedish Act on Public Takeovers on the Stock Market requires investors who exceed three-tenths of the voting rights in a listed company to take further action. For Candle Lake, that means choosing between launching a mandatory bid for Evolution or selling enough shares to move back below the threshold.
A potential takeover offer would also be subject to pricing requirements. Swedish takeover regulations state that any mandatory offer cannot be lower than the highest price paid by the bidder for Evolution shares during the six months preceding the announcement. The rule also extends to purchases made while an offer is underway.
There is a third possibility available to Candle Lake. The Swedish Securities Council has authority to grant exemptions from mandatory bid obligations in certain circumstances. However, such exemptions are generally associated with transactions involving rights issues or share-based acquisitions rather than shares accumulated through open-market purchases.
The development places Dart in a notable position within the gambling sector, where large shareholders rarely approach mandatory bid thresholds in major listed companies. The Evolution stake also comes as he continues to hold a substantial interest in another industry heavyweight, Flutter Entertainment.
Flutter Stake Remains Below Irish Trigger Point
Dart has steadily expanded his exposure to Flutter since first revealing a 5% position in September of last year.
According to reporting by The Irish Times earlier this month, his overall economic interest in Flutter had grown to nearly 29.6%. That figure sits close to the level that would typically trigger a mandatory offer requirement under Irish takeover regulations.
However, the composition of the holding plays a significant role. Approximately 10.7 percentage points of the interest are reportedly held through cash-settled equity swaps. Because those instruments generally do not carry voting rights, they are not normally included when calculating whether an investor has crossed the Irish takeover threshold.
As a result, a mandatory bid for Flutter is not currently expected even if Dart’s total economic exposure exceeds 29.9%.
Flutter shares ended trading on July 24 at $101.25, reflecting a weekly decline of 4.98%. The company is also preparing to delist from the London Stock Exchange on August 3.
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Evolution Faces Regulatory and Financial Developments
The ownership disclosure arrived amid several important developments for Evolution.
One day before the filing, the UK Gambling Commission announced the conclusion of a license review involving Evolution Malta Holding Limited. The review, which began in December 2024, resulted in a £4.75 million settlement.
According to the regulator, Evolution’s anti-money laundering and terrorist financing risk assessment procedures failed to adequately identify that two operators were making the company’s games available to customers in Great Britain without the necessary licenses. The activity reportedly occurred across six unlicensed websites between December 2023 and November 2024.
The Commission stated that the issues were serious enough to consider suspending the license before ultimately reaching a settlement. Regulators cited Evolution’s cooperation and remedial measures as factors in resolving the matter.
Meanwhile, Evolution’s latest financial results showed mixed performance indicators. During the second quarter, the company generated net revenue of €517.8 million, representing a year-over-year decline of 1.2%.
EBITDA reached €341 million, producing a margin of 65.9%. The company also reported that its European operations returned to quarter-over-quarter growth, increasing 3.5% after several weaker periods.
For the full 2025 financial year, Evolution recorded net revenue of €2.07 billion, which remained unchanged from the prior year. Profit for the period fell 14.6% to €1.06 billion.
Investors responded positively after the latest developments, with Evolution shares closing at SEK 695 on July 24 before gaining more than 4% when trading resumed on July 27.
At the July 24 closing price, Candle Lake’s holding was valued at roughly SEK 41.6 billion.
The next stage of the process now rests with Dart and Candle Lake.
Having crossed the 30% ownership threshold, the investor must decide whether to commit the resources necessary to pursue the remainder of Evolution’s shares or reduce the stake to a level below the mandatory bid trigger.
Source:
“Kenneth Dart triggers Evolution mandatory bid after crossing 30%“, europeangaming.eu, July 28, 2026.