- Continental Resources, Inc. (NYSE: CLR) share price rose more than 7% before trading today. This is why.
Continental Resources, Inc. (NYSE: CLR) share price rose more than 7% before trading today. Investors are responding positively to Continental Resources announcing that its board of directors has received a non-binding letter of proposal, dated June 13, 2022, from Harold Hamm, on behalf of him, the Harold G. Hamm Trust and certain trusts established for the benefit from members of the Hamm family to acquire for cash all of the outstanding common shares of Continental, other than the common shares owned by the Hamm family and the common shares underlying the unvested stock awards issued pursuant to the incentive plans long-term from Continental.
The Hamm family’s proposal of $70 per share represents a premium of approximately 9% over Continental’s closing price on June 13, 2022, a premium of approximately 11% over its volume-weighted average price over the last 30 days of trading. trading through June 13, 2022, and a 21% premium to the volume-weighted average price of common shares traded during 2022. And the Hamm family collectively owns approximately 83% of the total common shares outstanding (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 plans to establish a special committee made up of independent directors of the Board to consider the proposal. And the Board hopes that the special committee will retain independent advisors, including independent financial and legal advisors, to assist it in this process.
Continental advises its shareholders and others considering trading in Continental securities that Continental recently received the proposal from the Hamm family and has not had an opportunity to carefully review and evaluate the proposal or make a decision regarding Continental’s response. to the proposal. And this proposal constitutes only an indication of interest on the part of the Hamm Family and does not constitute a binding commitment with respect to the proposed transaction or any other transaction.
No agreement, arrangement or understanding will be created between Continental and the Hamm family in connection with any proposed transaction unless definitive documentation is executed and delivered by the Hamm family, Continental and all other appropriate parties.
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