US oil and gas company SilverBow Resources has declined Kimmeridge Energy Management’s $2.1bn acquisition offer, citing undervaluation, according to Reuters.

The proposal was the latest in a series of attempts by Kimmeridge to acquire SilverBow over the past two years.  

The most recent bid, which was made on 13 March, aimed to merge SilverBow with Kimmeridge Texas Gas (KTG) assets in South Texas, which Kimmeridge estimates to be worth approximately $1.4bn, including debt.  

However, SilverBow has stated that this bid “substantially undervalues” the company. 

The board of SilverBow emphasised the importance of conducting thorough due diligence on KTG.  

They believe that shareholders require concrete information to assess the true value of KTG’s assets, rather than relying on Kimmeridge’s valuation claims. 

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In a statement, SilverBow said: “SilverBow has been and continues to be open to exploring a transaction at an appropriate valuation. As with prior engagements, Kimmeridge is once again demanding that SilverBow acquire KTG on its proposed valuation and financing terms.” 

Kimmeridge, which holds a 12.9% stake in SilverBow, alongside Riposte Capital, the second-largest shareholder, has been advocating for changes in the US energy firm’s board.  

The oil and gas company added: “Kimmeridge is trying to install its director nominees on the Board, in order to take control of the Company without paying an appropriate premium and have their newly appointed directors force the KTG transaction at a later date.” 

Riposte Capital declined to comment on the matter.  

SilverBow has dismissed the three board nominees suggested by Kimmeridge earlier in March. 

SilverBow raised concerns regarding the proposed nominees, noting that their close connections with Kimmeridge could compromise their “independence and ability to represent the interests of all SilverBow shareholders.”