Continental Resources Inc., Oklahoma City, has agreed to be acquired by the Hamm family. The company, founded by Harold Hamm, agreed to the merger following Hamm’s increased offer of $74.28 per share from the original $70-per share proposal, a 9% premium to the Oct. 14 close and a 15% premium to the June 13 close ahead of the initial offer.
The company entered an agreement and plan of merger with Omega Acquisition Inc., an Oklahoma corporation (merger sub), an entity owned by Hamm. Based on the shares outstanding as of Oct. 12, 2022, the tender offer would be for about 58 million shares of common stock.
The merger sub will merge with and into Continental, with Continental continuing as the surviving corporation and wholly owned by the Hamm family.
Hamm currently serves as chairman of Continental's board of directors. He and the rest of the Hamm family collectively own about 83% of Continental's common stock.
The operator had second-quarter 2022 net income of $1.21 billion and adjusted net income of $1.25 billion. The company reduced total debt by about $265 million in the quarter, and unlike prior quarters, did not repurchase shares.
The deal is expected to close by yearend.