Dominion Diamond Corp. Open To Discuss Sale, Has Received No Formal Offer

Mining and Exploration
22/03/2017 12:19

Dominion Diamond Corporation has sent an notice to its investors reconfirming that, "While its Board of Directors remains confident in the Company's long-term strategic plan and the opportunity it provides to enhance value for all shareholders, as it always has, the Board remains open to holding discussions with Washington Corporations ("WashCorps") on customary terms and in a manner that protects the interests of the Company and its stakeholders." 

They also note it is important to highlight to all Dominion shareholders that: WashCorps has not made a formal offer to Dominion or its shareholders. Should Dominion receive a formal offer, the Board of Directors will assess it; that Dominion has consistently told WashCorps that it is prepared to engage in discussions on customary terms in order to allow WashCorps to improve its conditional and opportunistic indicative proposal; and that WashCorps has insisted on terms that would give it a "free option" and present significant risks to the Company and shareholder interests.

To provide clarity, the statement reads, Dominion released its correspondence between with WashCorps, which highlights the aggressive and off-market terms and conditions proposed by WashCorps in regards to its opportunistic indicative proposal, and the Company's responses. Dominion particularly takes issue with terms that WashCorps has insisted on for discussions, "including your requirement for a lengthy period of exclusivity so that you can begin your due diligence, your insistence that you be able to veto our choice of CEO, and your refusal to accept a customary form of standstill."