Continental Resources Reports Receiving “Take Private” Proposal From Hamm Family

Jun 14, 2022 By MarketDepth

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Continental Resources, Inc. (NYSE: CLR) shares jumped more than 13% Tuesday after the Company announced that its board of directors has received a non-binding proposal letter, dated June 13, 2022, from Harold G. Hamm, on behalf of himself, the Harold G. Hamm Trust and certain trusts established for the benefit of Mr. Hamm’s family members, with the purpose to acquire for cash all of the outstanding shares of common stock of Continental, other than shares of Common Stock owned by the Hamm Family and shares of Common Stock underlying unvested equity awards issued pursuant to Continental’s long-term incentive plans.

Top 10 Oil Producer

Continental Resources is a top 10 independent oil producer in the U.S. and a leader in America’s energy renaissance. 

9% Premium to Monday Closing Price

The proposal of $70 a share represents an approximate 9% premium over the Company’s closing price on June 13th, 2022, and, a premium of approximately 11% to its volume weighted average price during the last 30 trading days through June 13, 2022 and a 21% premium to the volume weighted average price of the Common Stock traded during 2022.

Currently Holding 83% of Total Shares

The Hamm Family collectively holds approximately 83% of the total outstanding shares of Common Stock (based on outstanding shares reported by Continental in its Quarterly Report on Form 10-Q filed with the SEC on May 4, 2022).

The Board intends to establish a special committee consisting of independent directors of the Board to consider the proposal. The Board expects that the special committee will retain independent advisors, including independent financial and legal advisors, to assist it in this process.