Is Kenneth Dart Taking Evolution Gaming Private?
Billionaire investor Kenneth Dart has crossed a key ownership threshold in Evolution Gaming after Candle Lake Ltd., increased its voting stake to 30.02%. Under Swedish takeover regulations, any shareholder that surpasses the 30% voting limit must either launch a formal offer for the remaining shares or reduce their ownership below the threshold within four weeks.
Today, Evolution stock is up nearly 7% in reaction to this.
Dart’s accumulation in shares in Evolution has significantly increased since August 2025, when Evolution stock has struggled, trading at a low teens multiple and has traded down up to 35% from highs.
In addition to the direct 30.02% voting stake, Dart maintains an extra cash-settled equity swap position via LBS Limited, bringing his absolute exposure to over 32%.
Dart is currently valued at $13 billion. Assuming his Evolution position is now worth roughly $4 billion, that means over 30% of his net worth is tied to Evolution.
Dart has a history of owning sin stocks, including Flutter Entertainment, British American Tobacco, and Imperial Brands.
In order to take Evolution private, he must acquire more than 90% of the total shares to trigger a compulsory redemption (squeeze-out) of the remaining minority shareholders.
One thing worth noting is that Dart has consistently stayed out of Evolution’s nomination committee, signaling that he has little interest in taking an active role in running the company.
Instead, his actions suggest he views Evolution as an investment, preferring to influence capital allocation through measures like share buybacks rather than becoming involved in day-to-day operations or pursuing full control.
My Thoughts
Ironically, there is not much you can really find about Kenneth Dart online. There seems to be only one picture of him, he stays very low-key, and is somewhat of a mysterious figure.
In my opinion, Dart will most likely submit a lowball offer to buy out the company, which is unlikely to be accepted. However, if he is serious about acquiring Evolution, the offer will likely need to come at a premium.
I think Dart’s patience and faith in Evolution are admirable, and I wish I had a fraction of that, considering the core business has been deteriorating and continues to face several recurring issues.
It certainly shows conviction in his thesis, the business, and its long-term prospects.
I will say that, with the aggressive buybacks in place (which I am very fond of) and Dart’s growing stake, he could be positioning himself to accumulate a significant amount of equity, assuming the business does not materially deteriorate.
My Continued Worries and Plan Moving Forward
I have been extremely vocal about my frustrations with management’s inability to address the issues plaguing the business and disrupting revenue growth. From my experience, these types of problems tend to persist, creating a vicious cycle that slows growth and can even lead to regression.
That has been the case for Evolution, and if these issues continue or worsen, the company’s massive buyback program and capital allocation strategy could end up being a disaster.
Thankfully, the stock is so inexpensive that it is not being priced for much growth, trading at just 11-12x earnings
.
I sold a small portion of my Evolution position last week to fund a higher-upside investment in TPB. My current Evolution position represents 4.5% of my portfolio, and after today’s move, I am up roughly 4-5%.
If Dart ultimately takes the company private, I would likely see a solid gain from today’s price. This recent momentum in the stock could also give me an opportunity to exit Evolution at a respectable return. If the stock reaches the $85-$90 range, I plan to gradually reduce my position.
Looking at Evolution in my portfolio today, it is certainly an outlier in several respects, and the primary reason I continue to hold the stock is the aggressive buyback program. However, after the latest earnings report, I am seeing more red flags surrounding management’s inability to address the company’s ongoing issues.
If you haven’t already, read my recent write-up on Evolution’s latest quarter, where I go into more detail about my concerns.
Disclosure: I am long Evolution Gaming and may buy or sell shares at any time without notice. This article reflects my personal opinions and is for informational purposes only. It should not be considered financial or investment advice. Please do your own research before making any investment decisions.