VANCOUVER (miningweekly.com) – TSX- and NYSE-listed Dominion Diamond Corp announced late on Thursday that proxy advisory firms Institutional Shareholder Services (ISS) and Glass, Lewis & Co have both recommended that Dominion shareholders vote in favour of suitor The Washington Companies’ $1.2-billion acquisition proposition.
Montana-billionaire Dennis Washington will buy Dominion for $14.25 a share in cash, with subsidiary Northwest Acquisitions slated to acquire all of the issued and outstanding common shares of Dominion.
Dominion reported that, in their analysis, ISS and Glass Lewis acknowledged the substantial premium for shareholders; the certainty of value and liquidity to shareholders, owing to the all-cash consideration; and the robust auction process; as factors supporting its positive recommendation.
The Dominion board, based in part on the recommendation of the special committee of independent directors, has unanimously determined that the arrangement is in the best interests of the company and has unanimously recommended that the shareholders vote for the arrangement resolution.
The voting deadline is at 10:00 Mountain Time next Friday.
Washington has hired former Mountain Province Diamonds CEO Patrick Evans to run Dominion.
Dominion has stakes in two diamond mines, both in Canada’s Northwest Territories. Ekati, in which it holds a controlling interest, has been producing for almost two decades and is Canada’s first diamond mine. Diavik, in which Dominion holds a 40% stake, is located nearby and is operated by joint venture partner Rio Tinto Group.