SilverBow Resources up after buyout offer from Kimmeridge

SilverBow Resources

13/03/2024 15:09

(Updates)
    ** Shares of oil and gas producer SilverBow Resources
 SBOW.N  up 2.8% at $32.61 
    ** Kimmeridge Energy Management submits a new offer to
acquire SilverBow that values SBOW at close to $2.1 bln,
including debt, the investment firm says
    ** Under the proposal, Kimmeridge would contribute
Kimmeridge Texas Gas (KTG) assets to SilverBow in exchange for
32.4 mln shares priced at $34 per share
    ** The price represents a premium of 8.5% over SBOW's
closing share price as of March 11, 2024
    ** Additionally, Kimmeridge will inject $500 mln of fresh
equity capital at the same price of $34/shr, in exchange for
14.7 mln shares
    ** KTG assets have an equity value of $1.10 bln and at
closing of the proposed transaction, co expects the enterprise
value to be $1.40 bln
    ** Kimmeridge is the largest shareholder in SilverBow with a
12.9% stake
    ** Including session's gains, SBOW up ~12% YTD

 (Reporting by Roshia Sabu in Bengaluru)
 ((Roshia.Sabu@thomsonreuters.com))