Continental Resources (NYSE:CLR) stock is rising higher on Monday thanks to an increased buyout offer from founder Harold Hamm.
Hamm is offering to purchase all outstanding shares of CLR stock for $74.28 each. That represents a 15% premium to the stock’s closing price on June 13, which was the last day before the original buyout offer was made.
Based on the offer price from Hamm, as well as the 58 million shares of outstanding CLR stock, the buyout offer comes to about $4.31 billion. Investors will also note that the Hamm family already “collectively own approximately 83%” of shares.
Continental Resources’ board has approved the merger agreement with Omega Acquisition, a company owned by Hamm. It’s also advising holders of CLR stock to tender their shares for the deal. If all goes well, the deal should close by the end of the year.
The History of Continental Resources
Harold Hamm, current Chairman of the board, founded Continental Resources back in 1967. Hamm created the company with a $1,000 loan and his family has continued to be involved in its operations.
Continental went public in 2007 but that 15-year run will come to an end with the current deal. Taking Continental Resources private will secure Hamm greater control of the company and could increase his net worth of $20.9 billion.
CLR stock is up 8.4% as of Monday morning and is up more than 60% since the start of the year.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
