Thursday, 23 March 2017
Latest news
Main » Dominion Diamond stock soars as United States company reveals takeover offer

Dominion Diamond stock soars as United States company reveals takeover offer

21 March 2017

A Montana-based company has set its eyes on a takeover of Dominion Diamond Corporation to the tune of US$1.1 billion.

That guidance notwithstanding, when you consider that Dominion Diamond's last earnings report featured a near-30% drop in revenues, and that the company has been losing money for more than a year, the prospect of a huge premium to last week's share price probably looks pretty attractive to investors today.

Washington Cos., which has interests in mining, marine and rail transportation and heavy equipment distribution, said it has a long track record of making businesses grow throughout North America, with expertise in the mining industry and the Canadian market.

Dominion has ownership interest in two major diamond mines in Canada's Northwest Territories.

NCAA tourney scores big TV viewership numbers including games in Orlando
Additionally, NCAA March Madness Live garnered 29 million live video starts over the first full Thursday, up 19% over past year . NCAA Tournament games garnering the most live streams to date, include: Notre Dame vs.

The Montana-based private company is offering $13.50 Dollars ($18.04 CAD) per share cash for Dominion Diamond.

"We are disappointed that Dominion's board has thus far prevented Washington from moving ahead with its proposal under which shareholders would receive a substantial premium and immediate liquidity, but we remain fully committed to completing this transaction", said Lawrence Simkins, Washington Cos.' president, in the statement. The stock rose 24 per cent to $12.29 at 9:48 New York Monday.

In short, Dominion Diamond is not terribly enthused with the offer, and there's no guarantee that any acquisition will happen, at any price. "While the Board considered the expression of interest to be opportunistic, and believes that it does not recognize all of the value in the Company under its current business plan, the Board told WashCorps that it was prepared to engage in discussions with them on customary terms, including a customary standstill, and allow WashCorps to conduct extensive due diligence on Dominion's unique assets and growth potential in order to improve their expression of interest".

They included, according to the statement, the ability to see confidential information that could later be used for a proxy fight to take over the company, and the ability to veto the board's choice of the new chief executive officer.

IPhone SE prices slashed, now available for Rs 19999
That is, you have to pay Rs 24,999 for the 16GB model, and once the cash back is offered, the net price comes down to Rs 19,999. With a 2GB RAM, 12-megapixel iSight rear camera and a 1.2-megapixel front camera, the phone is powered by a 1,715mAh battery.

On Sunday, Dominion Diamond said its board hadn't closed the door on the deal with Washington Cos. but wouldn't accept opening its books to a third party without certain protections.

"Dominion still refused. As a result, discussions have ended".

TD Securities acting as financial adviser for Dominion Diamonds while Stikeman Elliott LLP is providing legal advice.

Bellator bolsters roster again with addition of light heavyweight Ryan Bader
MMAjunkie has confirmed with Bellator president Scott Coker that the UFC veteran is set to accept a multi-fight contract today. Silva was supposed to fight Mirko Cro Cop in the Rizin 2016 Openweight Grand Prix, but pulled out of the fight due to injury.

Dominion Diamond stock soars as United States company reveals takeover offer