The Washington Companies Acquires Dominion Diamond for $1.2 Billion

Published: July 19, 2017 |

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Dominion Diamond Corporation and The Washington Companies have 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 or a total equity value of approximately US$1.2 billion pursuant to a plan of arrangement under the Canada Business Corporations Act.

The Washington Companies is a group of privately held North American mining, industrial and transportation businesses founded by industrialist and entrepreneur Dennis R. Washington.

“Dominion Diamond has an excellent collection of mining assets and a talented and experienced management team and workforce,” said 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. The Washington Companies has a 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,” added Simkins.

“The Washington offer delivers compelling and immediate value to Dominion shareholders at an attractive premium that recognizes the intrinsic value of Dominion and provides shareholders certainty through an all-cash offer,” said Jim Gowans, chair of the board of Dominion Diamond Corporation.

“This offer is the result of a robust strategic review process and the Board unanimously agrees that this offer represents the best option available to Dominion shareholders, and recommends that shareholders vote in favour of this transaction,” added Gowans.

“Dominion also believes this transaction is an excellent outcome for the company’s stakeholders, including employees, community members and the Northwest Territories. The transaction allows the operation to take the next steps in mine development and ensures mining and its associated benefits continue in the North for decades to come,” said Gowans.

“The Washington Companies’ commitments to safety, operational excellence, innovation and world-class management teams position us favorably for long-term success at the Ekati and Diavik mines for the benefit of all Dominion Diamond stakeholders. I look forward to the next chapter of continuing to build and support successful, safe business operations in the Northwest Territories,” said Dennis Washington, founder of The Washington Companies.

BENEFITS TO CANADA

Washington will be a responsible, long-term operator and builder of Dominion’s world-class assets, and plans to extend the mine life of Ekati for decades, consistent with the current development plan.

As part of this acquisition, Washington plans to:

• Operate Dominion as a standalone business as Washington does with its other successful operating companies
• Appoint a new CEO based in Canada to the Dominion management team
• Keep Dominion’s headquarters in Canada and maintain a significantly Canadian management team
• Deploy capital to develop both the Jay and Fox Deep projects
• Make new investments in a reinvigorated greenfield exploration program
• Maintain a high level of environmental stewardship through all phases of its operations
• Provide ongoing and long-term employment for skilled, high-paying jobs at Dominion
• Maintain focus on the recruitment, training and employment of Indigenous people
• Honor the existing commitments to the Indigenous communities to ensure their interests are protected
• Continue with scholarship programs and heritage funds to assist with social, recreational, and community
development programs
• Provide ongoing support for local suppliers and contractors, including Indigenous businesses
• Continue to promote Dominion’s CanadaMark brand for its ethically sourced and premium Canadian diamonds

The board of directors of Dominion, after consultation with financial and legal advisors, and based on the recommendation of a special committee of the board consisting of four independent directors, has unanimously determined that the arrangement is in the best interests of the company, approved the arrangement and recommends that Dominion’s shareholders vote in favor of the arrangement. All directors of the company have entered into support agreements to vote their common shares in support of the arrangement.

About Dominion Diamond Corporation
Dominion Diamond Corporation is a Canadian mining company and one of the world’s largest producers and suppliers of premium rough diamond assortments to the global market. The Company operates the Ekati Diamond Mine, in which it owns a controlling interest, and owns 40% of the Diavik Diamond Mine, both of which are located in the low political risk environment of the Northwest Territories in Canada. It also has world-class sorting and selling operations in Canada, Belgium and India.

To stop by Dominion Diamond’s website, CLICK HERE

About The Washington Companies
The Washington Companies, founded by industrialist and entrepreneur Dennis R. Washington, are privately held companies active in the core industries of mining, rail and marine transportation, aviation, environmental remediation and restoration services, and heavy equipment sales and service. The companies are headquartered throughout Montana, the Pacific Northwest and western Canada and conduct business internationally.

To stop by The Washington Companies’ website, CLICK HERE

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