Dominion Diamond to be taken over by WashCorps

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.