Dominion Diamond Agrees To Be Acquired By The Washington Cos. For $1.2 Billion

Canadian mining company Dominion Diamond Corp. said Monday it has agreed to be acquired by The Washington Companies for $14.25 a share in cash, or $1.2 billion. The Washington Companies is a group of privately held North American mining, industrial and transportation businesses founded by Dennis Washington, an industrialist and entrepreneur. The price is equal to a 44% premium over Dominion's share price on March 17 and ends the company's review of strategic alternatives announced on March 27, the company said in a statement. Dominion will continue to operate as a standalone business with a new CEO based in Canada. The company will continue to operate the Ekati Diamond mine, which it controls, as well as the Diavik Diamond mine, in which it has a 40% interest. Both are located in the Northwest Territories in Canada. Dominion shares were halted premarket for the news, but have gained 39% in 2017, while the S&P 500 has gained about 10%.