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Continental Resources shares jumped 8%; Here is why

Continental Resources Inc. (NYSE: CLR) shares jumped 8% after announcing that its board of directors has received a non-binding offer letter from Harold G. Hamm to purchase all its outstanding common stock shares currently not held by the Hamm Family. The proposal is also to acquire common stock shares undelaying unvested equity awards offered under the company’s long-term incentive plans.

The Hamm Family to acquire outstanding shares at $70

Harold submitted the proposal on behalf of himself, the Harold G. Hamm trusts,  as well as other trusts created for the benefit of the Hamm Family.

The Hamm Family’s proposition of $70 per share reflects a 10% premium on the closing price of the company’s shares on June 13, 2022, an 11% premium over the volume-weighted average price in the last 30 trading sessions through June 13, 2022, and a 21% premium over its volume-weighted average Common Stock price traded in 2022. Collectively, the Hamm Family owns almost 83% of the total number of outstanding common stock shares.

To assess the offer, the board plans to form a special committee comprised of independent directors. In addition, the board anticipates that the special committee might employ independent experts to help it in the process, including independent legal and financial advisors.

Hamm Family submitted a proposal recently.

Continental warns its stockholders and others contemplating trading in its shares that the Hamm Family’s offer was just received recently, and the company has not had time to carefully analyze and evaluate the offer or take any action regarding Continental’s reply to the proposition. The proposal is just an expression of desire on the part of the Hamm Family, and it is not a contractual agreement to the proposed deal or any related transaction.

The company and the Hamm Family will not enter into any arrangement, agreement, or commitment relating to the proposed deal unless and until formal documentation is signed and submitted by Continental, the Hamm Family, and all other required parties.

Continental does not commit to offering any updates or further disclosures regarding this or other transaction unless required by law.

The post Continental Resources shares jumped 8%; Here is why appeared first on Invezz.

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