American conglomerate The Washington Companies is taking over Dominion Diamond Corporation through an agreement stipulating the sale of the Canadian miner to Washington for US$1.2 billion.
Washington, a group of privately held North American mining, industrial and transportation businesses founded by industrialist and entrepreneur Dennis R. Washington, recently announced it has entered into an arrangement agreement under which an entity affiliated with Washington will acquire all of Dominion’s outstanding common shares for US$14.25 per share in cash pursuant to a plan of arrangement under the Canada Business Corporations Act.
The transaction resulted from Dominion's review of strategic alternatives.
“Dominion Diamond has an excellent collection of mining assets and a talented and experienced management team and workforce,” noted 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.”
Simkins also cited Washington’s 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,” he added.
Jim Gowans, chairman of the Board of Dominion Diamond, commented, “The Washington offer delivers compelling and immediate value to Dominion shareholders at an attractive premium that recognises the intrinsic value of Dominion and provides shareholders certainty through an all-cash offer.”
Gowans added that the transaction will benefit the company’s stakeholders, including employees, community members and the Northwest Territories.
“The Washington Companies’ commitments to safety, operational excellence, innovation and world-class management teams position us favourably for long-term success at the Ekati and Diavik mines for the benefit of all Dominion Diamond stakeholders,” added Washington, founder of The Washington Companies. “I look forward to the next chapter of continuing to build and support successful, safe business operations in the Northwest Territories.”