SilverBow Resources up after merger offer from Kimmeridge

SilverBow Resources

13/03/2024 12:40

** Shares of oil and gas producer SilverBow Resources
 SBOW.N  up 5.1% at $33.36 premarket
    ** Kimmeridge Energy Management issues letter to SilverBow
board outlining a proposal to combine Kimmeridge Texas Gas (KTG)
and SilverBow
    ** Under the proposal, Kimmeridge would contribute the 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 on 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 has an equity value of $1.10 bln and at
closing of the proposed transaction expects the enterprise value
to be 1.40 bln
    ** Up to last close, SBOW up ~9% YTD

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