17 Jul Dominion Diamond accepts $1.2 billion takeover bid from Washington Companies
Canada’s Dominion Diamond Corporation (NYSE:DDC) has accepted a sweetened takeover offer of US$1.2 billion from privately-owned corporate group Washington Companies.
The world’s third largest diamond miner by market value has been offered a price of US$14.25 per share, up from an initial offer of $13.50 a share, which was pitched in February and made public in March.
The increased offer from Washington, a group of North American mining, industrial and transportation businesses founded by industrialist Dennis Washington, represents a 44% premium to Dominion’s closing price of $9.92 on March 17.
Dominion has a majority stake in the Ekati mine and a minority share in the Diavik mine, both located in Canada’s Northwest Territories.
“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,” said Washington president Lawrence Simkins.
Dominion has been hit by low global diamond prices, and is moving its head offices from Yellowknife to Calgary as part of a cost-cutting move.