SilverBow Resources Shareholder Endorses Kimmeridge's $2.1 Billion Offer

(Reuters) — SilverBow Resources shareholder Riposte Capital on Thursday backed Kimmeridge Energy Management's latest buyout offer that valued the U.S. oil and gas producer at close to $2.1 billion, including debt.

The activist shareholder, which owns about 9.9% of SilverBow's outstanding common stock, said the offer from the company's largest shareholder was "highly compelling".

On March 13, Kimmeridge submitted a new offer that aimed to combine SilverBow with Kimmeridge's gas-producing assets in South Texas.

"The combined entity would be positioned to lead further consolidation in the region and would be instantly attractive to the public markets," Riposte said.

SilverBow said it was carefully reviewing the proposal while Kimmeridge did not immediately respond to a request for comment.

In November, Kimmeridge had backed Riposte Capital's demand that SilverBow appoint three new directors to its board.

SilverBow's shares slipped in morning trade, tracking a decline in crude oil prices.

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