Connect with us

Headlines

Dominion Diamond to Be Acquired in $1.2B Deal

mm

Published

on

Dominion will run as a standalone business.

The Washington Cos. plans to buy Dominion Diamond Corp. for $1.2 billion.

“Dominion Diamond has an excellent collection of mining assets and a talented and experienced management team and workforce,” said Lawrence R. Simkins, president of Washington. “We are excited to work with their team to extend the mine life of the Ekati mine and continue partnering with Rio Tinto in the operation of the Diavik mine, while maintaining long-term employment for Dominion employees.”

Missoula, MT-based Washington will acquire all outstanding common shares of Dominion (TSX: DDC, NYSE: DDC) for $14.25 per share in cash. The transaction represents a 44 percent premium to Dominion’s unaffected share price of $9.92 on March 17.

Washington is a group of privately held North American mining, industrial and transportation businesses founded by industrialist and entrepreneur Dennis R. Washington. All directors of the company have entered into support agreements to vote their common shares in support of the deal.

“The Washington offer delivers compelling and immediate value to Dominion shareholders at an attractive premium that recognizes the intrinsic value of Dominion and provides shareholders certainty through an all-cash offer,” said Jim Gowans, chairman of the board of Dominion. “This offer is the result of a robust strategic review process and the Board unanimously agrees that this offer represents the best option available to Dominion shareholders, and recommends that shareholders vote in favour of this transaction.”

Washington said in a press release that it plans to operate Dominion as a standalone business and appoint a new CEO based in Canada to the Dominion management team. It will keep Dominion’s headquarters in Canada and “maintain a significantly Canadian management team.”

Advertisement

If the deal is not completed “as a result of a superior proposal,” Dominion will be required to pay Washington a termination fee equal to $43.9 million. If Washington is unable to complete the transaction due to a funding failure, or in other limited circumstances, it will have to pay dominion a fee equal to $70.2 million.

 

Advertisement

SPONSORED VIDEO

This Third-Generation Jeweler Was Ready for Retirement. He Called Wilkerson

Retirement is never easy, especially when it means the end to a business that was founded in 1884. But for Laura and Sam Sipe, it was time to put their own needs first. They decided to close J.C. Sipe Jewelers, one of Indianapolis’ most trusted names in fine jewelry, and call Wilkerson. “Laura and I decided the conditions were right,” says Sam. Wilkerson handled every detail in their going-out-of-business sale, from marketing to manning the sales floor. “The main goal was to sell our existing inventory that’s all paid for and turn that into cash for our retirement,” says Sam. “It’s been very, very productive.” Would they recommend Wilkerson to other jewelers who want to enjoy their golden years? Absolutely! “Call Wilkerson,” says Laura. “They can help you achieve your goals so you’ll be able to move into retirement comfortably.”

Promoted Headlines

Most Popular