Key Moments:
- Evolution increased its treasury stock to 13.54 million shares after repurchasing 853,947 shares between 24 and 28 August
- Candle Lake’s mandatory SEK 695 (€62.48) per share offer for Evolution remains open, following its increase to a 30.02% stake
- Evolution’s board has recommended shareholders reject the offer, emphasizing plans to cancel repurchased shares after a 22 September vote
Ongoing Share Repurchases Strengthen Treasury Holdings
Evolution has continued its buyback initiative by acquiring 853,947 additional shares on Nasdaq Stockholm from 24 to 28 August. With this move, the company now holds 13.54 million shares in treasury, having bought a total of 13,540,102 shares since starting the program on 19 May. This represents about 68 percent of the maximum 19,922,661 shares authorized for repurchase.
The repurchases occurred at daily weighted average prices between SEK 827.28 (€74.37) and SEK 836.82 (€75.23), which is approximately 19 percent to 20.4 percent higher than Candle Lake’s ongoing cash offer of SEK 695 (€62.48) per share. Citibank managed the transactions and independently determined the timing of purchases. Daily purchase volumes ranged from 166,346 to 181,632 shares.
According to Evolution, the buyback program targets capital structure optimization and aims to “optimise the capital structure of Evolution by reducing the capital” and deliver additional value to shareholders.
Candle Lake’s Offer and Board’s Response
Major shareholder Candle Lake, fully owned by Kenneth Dart, made a mandatory public cash offer of SEK 695 (€62.48) per share on 13 August, after increasing its ownership to approximately 30.02 percent on 24 July and surpassing the takeover threshold. Candle Lake clarified that the offer serves as a “financial investment in a well-managed, highly profitable business” and not as a bid for all remaining shares. However, the number of shares tendered to date remains undisclosed.
The Evolution board has firmly advised shareholders not to accept Candle Lake’s offer. In its 24 August statement, the board referenced stock price history, financial position, and overall outlook, concluding that the SEK 695 (€62.48) price “does not reflect the fair market value of Evolution.” While the offer matched Evolution’s closing price on 24 July, it represented a 5.7 percent discount to the 12 August closing price of SEK 737.2 (€66.27).
The offer acceptance period opened on 17 August and is scheduled to end around 15 September.
Extraordinary Meeting Set for Share Cancellation Vote
Evolution’s board has scheduled an extraordinary general meeting on 22 September in Stockholm to seek shareholder approval for the cancellation of shares repurchased under the current program. The proposal would allow for up to 19,922,661 shares to be cancelled, aligning with the maximum authorized for buyback. This action is designed to reduce the total share count without adjusting the company’s registered share capital.
Evolution intends to continue its share buybacks ahead of the meeting. As of the most recent announcement, the company’s total shares outstanding stood at 199,226,613.
Repurchase Activity Details
| Repurchase Period | Shares Bought | Treasury Holding (Total) | Average Daily Price (SEK) | Candle Lake Offer Price (SEK) | Shares in Issue |
|---|---|---|---|---|---|
| 24-28 August | 853,947 | 13,540,102 | 827.28 – 836.82 | 695 | 199,226,613 |
- Author
Daniel Williams
