10:14 AM EDT, 03/13/2024 (MT Newswires) -- SilverBow Resources ( SBOW ) shares were rising past 3% in recent Wednesday trading after the company confirmed it has received a proposal from shareholder Kimmeridge Energy Management for a potential deal between SilverBow and Kimmeridge Texas Gas.

Kimmeridge is proposing to contribute the assets of Kimmeridge Texas Gas as well as $500 million in cash in exchange for shares to be issued by the combined company, SilverBow said.

After the planned deal, Kimmeridge would control a supermajority of the combined entity, SilverBow said, and the rest of the shares would be owned by public shareholders.

The company said its board will review the proposal, adding it has "engaged extensively" with Kimmeridge to maximize value for shareholders since August 2022.

Price: 32.83, Change: +1.11, Percent Change: +3.48