SilverBow sinks after largest holder Kimmeridge drops buyout proposal

Kimmeridge, the largest shareholder of SilverBow Resources holding 12.9% of outstanding shares, earlier today withdrew its proposal to acquire SilverBow. Kimmeridge said in a statement: “It appears that SilverBow is not willing to seriously engage in any discussions of mergers in which it would be the smaller party. Instead, the Board and management team are focused on maintaining their positions and compensation. Given SilverBow’s lack of engagement, Kimmeridge sees no pathway towards a transaction by the April 26, 2024 deadline that we had put forward more than a month ago. As a result, we are withdrawing the Proposal and will be focused on providing solutions for SilverBow’s broken governance. The only way SilverBow will maximize value for all shareholders and reach its long-term potential is by introducing new, independent, and experienced perspectives to the Board. The nominees we have put forward are committed to conducting a thorough and unbiased evaluation of all potential paths to value creation – and are bound by none of them, including our prior Proposal. Their only fiduciary duty is to advance the best interests of all SilverBow shareholders.” Shares of SilverBow are down 5%, or $1.49, to $30.85 in morning trading.