Oklahoma-based Continental Resources shareholders approve purchase
Continental Resources shareholders voted Friday morning to approve the purchase of Enid-based Wheatland Oil Co., which is owned by Continental executives Harold Hamm and Jeff Hume. More than 99 percent of the voting shares were in favor of the deal.
Continental Resources shareholders voted Friday morning to approve a nearly $280 million purchase of Enid-based Wheatland Oil Co., which is owned by Continental executives Harold Hamm and Jeff Hume.
More than 99 percent of the voting shares were cast in favor of the deal.
Continental required that the sale be approved by a majority of the shares not controlled by Hamm, Hume and other directors and executives. Shares that were not voted were counted as “no” votes.
By that calculation, the sale passed with approval of more than 80 percent of the minority shares.
“I think the shareholders recognized the process that we went through and the price we negotiated with Harold and Jeff was a good price and favorable to the minority shareholders,” said Mark Monroe, the independent Continental director who led the Wheatland purchase.
The all-stock transaction is expected to close next week.
Hamm owns 75 percent of Wheatland, while Hume controls the remaining 25 percent.
Under terms of the deal, Continental will pay for Wheatland by issuing about 3.9 million shares to Hamm and Hume. At Friday's closing price of $71.72 per share, the transaction is worth just less than $280 million.
“It's a good deal for the company and a good deal for the Wheatland owners. It's a fair deal that was handled well,” Hume said. “This focuses Harold and me on Continental Resources, which was the whole intent.”