Billionaire-founder Harold Hamm offers to take Continental private in $25-billion deal

[June 14, 2022]   (Reuters) - Shale producer Continental Resources Inc said on Tuesday it has received an all-cash buyout proposal from billionaire-founder Harold Hamm's family trust, which valued the company at $25.41 billion.

Storage tanks stand on a Continental Resources oil production site near Williston, North Dakota January 23, 2015. REUTERS/Andrew Cullen/File Photo

The Hamm family holds about 83% of the total outstanding shares of the company's common stock. The proposal of $70 per share represents about 9% premium over Continental's last closing price.

Continental shares rose 6.5% to $68.70 in premarket trading following the disclosure of the offer, which comes as oil prices hit triple digits after Russia's invasion of Ukraine.

The conflict has disrupted supply chain at a time fuel demand is rising on resumption of global travel.

Continental said its board has not yet had the chance to review the offer and would form a special committee of directors unrelated to the Hamm family to consider the proposal.

If the independent committee rejects the proposal, the Hamm family will continue as long-term shareholders and would not push for any strategic options, according to the offer letter published by Continental.



(Reporting by Arunima Kumar in Bengaluru; Editing by Arun Koyyur)
 

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