Washington Companies Closes Acquisition of Dominion Diamond

Mining and Exploration
02/11/2017 13:43

Dominion Diamond Corporation and The Washington Companies yesterday announced the completion of the latter's takeover of the Canadian diamond miner, officially acquiring all of the issued and outstanding common shares of Dominion for US$14.25 per share in cash. In total it amounted to a $1.2 billion acquisition. Dominion will operate as a standalone, private company, and Patrick Evans has been appointed Chief Executive Officer, effective immediately. The deal marks the end of Dominion as a publicly traded company, as the common shares of Dominon were expected to be delisted from the Toronto Stock Exchange the end of trading on November 2, 2017, and suspended from trading on the New York Stock Exchange at the end of trading on November 1, 2017. 

Patrick Evans, CEO of Dominion, said, “I am pleased to join Dominion Diamond at this exciting time for the Company. I will work relentlessly with management and our talented employees to help realize the long-term potential of Dominion’s world-class assets, specifically by extending the life of the Ekati mine, investing to develop the Jay Project and reinvigorating our exploration program." Meanwhile, on the purchaser's side, “This is an exciting day for Dominion Diamond and The Washington Companies,” said Lawrence R. Simkins, President of Washington. “We fully support Dominion’s existing strategy and its exceptional employees, and we are confident that Dominion will continue to offer long-term benefits to all of the Company’s stakeholders.” In addition to naming Evans CEO, the Dominion Board of Directors will include new directors who possess a mix of relevant business and mining expertise, such as Rolin Erickson, President of Montana Resources, a copper and molybdenum mine owned by Washington.

Image: Copyright © 2017 Dominion Diamond Mines