WhiteHawk Energy is amplifying its effort to acquire PHX Minerals Inc. after urging its shareholders to pressure PHX to respond to the $4 per share all-cash offer made Oct. 14, according to WhiteHawk's Nov. 12 press release.
The move follows months of unsuccessful attempts to engage PHX's leadership, including a previous stock-for-stock merger proposal in August 2023 following an initial proposition to PHX in May 2023 and again in a revised letter in June 2023.
The current offer represents a 17% premium to PHX's 30-day volume weighted average price and a 19% premium to its 90-day average price, WhiteHawk said.
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WhiteHawk's CEO Daniel C. Herz said the offer is a substantial premium to PHX's recent trading prices, emphasizing it as beneficial for all stockholders.
PHX's trading price closed at $3.55 on Nov. 11.
WhiteHawk's August 2023 proposal stated that PHX stockholders would own approximately 61% of the pro forma equity of WhiteHawk Minerals Corp. and receive a one-time $0.20 per share cash dividend.
PHX's board rejected the proposal in a letter to WhiteHawk on account of the offer being far short and "grossly inadequate in terms of the value offered to PHX and its stockholders."
At the time, PHX said it had evaluated over 150 potential and "better" acquisition prospects and that WhiteHawk's assets would add risk if it were to be combined with PHX's portfolio.