Oil and Gas

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

Key Points
  • Shale producer Continental Resources 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.
  • 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.

In this article

Harold Hamm, CEO of Continental Resources Shale Oil Company, delivers a speech on the third day of the Republican National Convention on July 20, 2016 at the Quicken Loans Arena in Cleveland, Ohio.
Alex Wong | Getty Images

Shale producer Continental Resources 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.

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 the supply chain at a time when fuel demand is rising on the 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.