US-based oil company Continental Resources received a takeover offer from its founder Harold G. Hamm and his family, which values the oil producer at $25.41bn.

The offer has been made by Hamm on behalf of himself, the Harold G. Hamm Trust, and some of the trusts launched for the benefit of his family members.

The Hamm family intends to acquire the approximately 17% stake it does not already own in the New York Stock Exchange (NYSE)-listed oil company for $70 per share in cash and make it private.

The Hamm family currently holds nearly 299.7 million shares in Continental Resources, which reported production rates of 373,810 barrels of oil equivalent per day in the first quarter of this year.

The firm holds assets in the Bakken play of North Dakota and Montana, the Anadarko basin of Oklahoma, the Permian basin of Texas, and the Powder River basin of Wyoming.

Hamm’s offer comes as shale companies in the US, including Continental, reported higher cash flows due to a surge in global oil prices following Russia’s invasion of Ukraine, reported the Financial Times.

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Hamm said that the proposed acquisition would provide Continental Resources’ shareholders with guaranteed and considerable value and liquidity.

In a press statement, Hamm stated: “We expect that the proposed transaction would be structured as a tender offer for any and all shares of common stock, other than excluded stock, followed by a merger without a vote of the Continental shareholders, in accordance with Section 1081.H of the Oklahoma General Corporation Act.”

The proposal, however, is not conditional on any due diligence. Potential definitive agreements of the proposed transaction will not include a financing condition.

Hamm further stated: “The Hamm Family is well positioned to negotiate and complete the proposed transaction, including obtaining any required financing, in an expeditious manner.

“If this proposal is acceptable to the Special Committee, the Hamm Family is prepared to immediately negotiate definitive agreements in respect of the proposed transaction.”

Continental Resources said that its board is planning to launch a special committee comprising its independent directors to evaluate Hamm’s takeover proposal.