Dominion Diamond Corp Acquired by Washington Corps for $1.2Bn
(IDEX Online) – After months of rumors, Dominion Diamond Corporation announced that The Washington Companies, a group of privately held North American mining, industrial and transportation businesses founded by industrialist and entrepreneur Dennis R. Washington, will acquire all of Dominion's outstanding common shares for $14.25 per share in cash or a total equity value of approximately $1.2 billion.
The transaction represents a 44 percent premium to Dominion's unaffected share price of $9.92 on March 17. The transaction marks the result of Dominion's review of strategic alternatives as previously announced on March 27.
Dominion's directors, after consultation with financial and legal advisors, and based on the recommendation of a special committee of the Board consisting of four independent directors, unanimously approved the deal and recommends that Dominion's shareholders approve it. All directors of the company have entered into support agreements to vote their common shares in support of the deal.
"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. The Washington Companies has a long track record of building businesses throughout North America, significant experience in mining as well as operating its investments in Canada, and a decades-long investment horizon. We share a commitment to providing long-term benefits to all Dominion stakeholders and to the Northwest Territories and its local communities."
"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, Chair of the Board of Dominion Diamond Corporation. "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 favor of this transaction."
Added Gowans, "Dominion also believes this transaction is an excellent outcome for the company's stakeholders, including employees, community members and the Northwest Territories. The transaction allows the operation to take the next steps in mine development and ensures mining and its associated benefits continue in the North for decades to come."