Do­min­ion Di­a­mond to be taken over by WashCorps

The Guardian (Charlottetown) - - BUSINESS -

TORONTO — Do­min­ion Di­a­mond Corp., one of the world’s largest di­a­mond pro­duc­ers, is en­dors­ing a US$1.2-bil­lion friendly cash takeover bid from the Wash­ing­ton Com­pa­nies, the Cal­gary-based miner said Mon­day.

Un­der the ten­ta­tive agree­ment, the pri­vately held Mon­tana-based com­pany is of­fer­ing US$14.25 per share for all shares of Do­min­ion Di­a­mond (TSX:DDC) and it will have the op­por­tu­nity to match any ri­val bid that comes for­ward.

Do­min­ion Di­a­mond had re­jected a pre­vi­ous of­fer of US$13.50 per share and be­gan a process to find al­ter­na­tive bids. Wash­ing­ton’s re­vised of­fer is slightly above the Fri­day clos­ing price of US$13.48 in New York. Do­min­ion Di­a­mond has in­ter­ests in two di­a­mond mines in the North­west Ter­ri­to­ries north­east of Yel­lowknife - it op­er­ates the Ekati di­a­mond mine, in which it has a con­trol­ling in­ter­est, and owns 40 per cent of the Di­avik di­a­mond mine.

Wash­ing­ton Co., some­times called WashCorps, said it plans to op­er­ate Do­min­ion Di­a­mond as a stand-alone busi­ness with a new CEO based in Canada. It said it will also keep Do­min­ion Di­a­mond’s head­quar­ters in Canada, with a Cana­dian man­age­ment team, and hon­our its ex­ist­ing com­mit­ments to Indige­nous com­mu­ni­ties to en­sure their in­ter­ests are pro­tected.

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