In a merger deal approved by Continental’s board of directors, the family of Harold Hamm, who started Continental Resources, will buy all the remaining stock in the shale company that they don’t already own.
The company announced the deal with Omega Acquisition, Inc. on Monday. Hamm, the founder of Continental, owns this Oklahoma company.
Continental Resources (NYSE: CLR) stock rose 8% before the market opened in New York.
Shale tycoon Harold Hamm and his family own about 83% of Continental’s common stock as of right now. About 58 million shares of common stock that the Hamms don’t already own would be offered in the tender offer.
Harold Hamm And Family Move To Buy
Through an organization called Omega Acquisition, the family will make a tender offer to buy all outstanding shares of Continental’s common stock for $74.28 per share. The Hamm family’s first offer to Continental was made public on June 14, 2022. The closing price of Continental’s common stock on June 13, 2022, was $64.50. This price is 15% more than that price.
Back in June, Hamm made an offer to buy Continental Resources out of the public market for $25 billion.
“We have always said that we would stay a public company as long as the market liked us, but if being public limited our options, we would look for other options,” Hamm said in a letter to employees in June.
“We’ve decided that the opportunity today is with private companies that aren’t limited by public markets,” Hamm said. “This is similar to how we ran our business about 15 years ago before we went public.”
In a statement released today, Continental Resources said that its Board of Directors had approved the merger agreement and related transactions based on the unanimous advice of a special committee made up of only independent and unbiased directors. As part of the tender offer, the Board also suggested that Continental’s shareholders hand over their shares of common stock.
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