LONDON, UK / ACCESSWIRE / July 19, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Dominion Diamond Corp. (NYSE: DDC), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=DDC. The Company announced on July 17, 2017, that it had entered into an agreement to be acquired by an affiliate of The Washington Companies. The total equity value of the acquisition offer is approximately $1.2 billion. For immediate access to our complimentary reports, including today's coverage, register for free now at:

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Commenting on the signing of the acquisition agreement, Jim Gowans, Chairman of the Board of Dominion Diamond Corporation said:

"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."

Lawrence R. Simkins, President of Washington Companies added:

"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."

Transaction details

As per the agreement, an affiliate of Washington Cos. will acquire all the outstanding shares of Dominion Diamond. Washington Cos. has agreed to pay US$14.25 in cash for each share of Dominion Diamond. The agreement is governed by the Canada Business Corporations Act. The offer price is at a 44% premium to Dominion's share price of US$9.92 on March 17, 2017. The acquisition agreement is a result of the strategic review conducted by Dominion Diamond in March 2017.

Dominion Diamond's Board of Directors has approved the transaction after due deliberations with its legal and financial advisors as well as the recommendations of the special committee formed for considering strategic alternatives for the Company. Dominion Diamond's directors, who own shares of the Company, have also signed agreements to vote in favor of the transaction.

According to the terms of the agreement, Dominion Diamond will have the right to consider and accept superior proposals; however, Washington Cos. will be given five days to match or exceed the proposal from the third party. In the event the Dominion Diamond goes ahead with the superior proposal from a third party and its agreement with Washington Cos. is terminated, Dominion Diamond will have to pay a termination fee of US$43.9 million to Washington Cos.

In the event that Washington Cos. is unable to complete the acquisition, due to any reason, it will have to pay Dominion Diamond a reverse termination fee of US$70.2 million

The closing of the transaction is dependent on at least 2/3rd of Dominion Diamond's shareholders voting in favor of the acquisition by Washington Cos. A special shareholders' meeting has been scheduled to be held in September 2017 for taking a vote on the matter. Because of the agreement, Dominion Diamond has agreed to suspend the announcement and payment of any dividends to its shareholders.

The closing date for the deal is also based on the cash in hand with Dominion Diamond. The closing date would be on or before November 30, 2017, if the minimum cash in hand is US$150 million and the closing date would be after November 30, 2017, if the minimum cash in hand is US$200 million. The transaction is expected to close in Q4 2017 and is subject to approvals from Canada's antitrust regulators, regulatory approvals, and other closing conditions.

Washington Cos. has already put in place the necessary financing to complete the acquisition. It has lined up debt financing from Credit Suisse with Citi, UBS Investment Bank, and Natixis. The balance funding will be through the sale of equity by Washington Cos. and use of cash available on Dominion Diamond's balance sheet. Washington Cos. is highly committed to ensuring the completion of the transaction.

Way Forward

Post the completion of the acquisition, Dominion Diamond will continue to operate as a standalone business with headquarters in Canada. Washington Cos. plans to appoint a new Canada based CEO and management team for Dominion Diamond. Washington Cos. has plans to invest capitalto develop Dominion Diamond's Jay and Fox Deep projects. The Company is committed to be a responsible long-term operator and builder of Dominion Diamond's world-class assets. It has plans to extend the mine life of Ekati under its development plans.

Positive Contribution to Canadian Economy

Washington Cos. is confident that the acquisition would be positive for the Canadian economy. Apart from that the Company is committed to make investments in greenfield exploration programs, create employment opportunities with new jobs, provide recruitment, training and employment to Canada's indigenous people and ensure that their interests are protected, support local vendors, and continue to promote Dominion Diamond's CanadaMark brand for its ethically sourced and premium Canadian diamonds.

About The Washington Companies

The Washington Companies are a group of standalone privately held Companies headquartered throughout the United States and western Canada. It was founded in 1964 by Dennis Washington and started off as Washington Construction Company contracted to repair roads for the US Forest Service. Presently, the Company's international presence and operations include marine transportation, mining, rail transportation, heavy equipment distribution, environmental remediation, aviation technology, and service.

About Dominion Diamond Corp.

Alberta, Canada based Dominion Diamond was founded in 1994 and started off as Aber Diamond Corporation. It is a leading Canadian diamond mining Company with ownership interests in two major producing diamond mines located approximately 200 kilometers south of the Arctic Circle in Canada's Northwest Territories. It is also Canada's largest independent diamond producer. The Company operates the Ekati Diamond Mine and has majority stake in it and owns 40% stake in the Diavik Diamond Mine. The Company is a major global supplier of rough diamonds with sorting and selling operations in Canada, Belgium, and India.

Last Close Stock Review

Dominion Diamond's share price finished yesterday's trading session at $14.10, marginally up 0.21%. A total volume of 5.97 million shares have exchanged hands, which was higher than the 3-month average volume of 1.15 million shares. The Company's stock price skyrocketed 12.35% in the last three months, 36.36% in the past six months, and 56.15% in the previous twelve months. Additionally, the stock soared 45.66% since the start of the year. Shares of the Company have a dividend yield of 2.84% and currently have a market cap of $1.18 billion.

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