Hamm's family trust currently holds 83%, or roughly 299.7 million shares of Continental. The purchase price represents an approximately 9% premium to the company's closing price on Monday, it said in a statement. It's an 11% premium to the volume weighted average price during the last 30 days and a 21% premium to the volume weighted average price of the stock traded during the year. Continental surged almost 15% Tuesday.
The offer estimates the remaining 17% stake at about $4.43 billion and the total value of the company at $25.41 billion based on the number of outstanding shares, according to MT Newswires' calculations.
In a letter to Continental's board, Hamm said the proposed transaction is expected to be a tender offer for the remaining shares, followed by a merger without a vote of the company's investors. Hamm said the offer is not subject to any due diligence and will not contain a financing condition.
Continental said its board has not yet had the chance to review the offer and intends to form a special committee of independent directors to evaluate it. The company expects the committee to use financial and legal advisers to assist.
"We want to advise you that we are interested only in acquiring Continental's common stock and are not interested in selling any of our common stock in Continental or pursuing other strategic alternatives involving Continental," Hamm said in his letter. The billionaire said if the company rejects his family's offer, they will continue to remain as long-term shareholders and not push for strategic options.
"The Hamm Family is well positioned to negotiate and complete the proposed transaction, including obtaining any required financing, in an expeditious manner," according to Hamm. The family is ready to negotiate definitive agreement terms with the company if it accepts the proposal, he said.
Price: 73.61, Change: +9.11, Percent Change: +14.12
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