Dominion Diamond Corporation Responds to Self-Serving Disclosure of Unsolicited and Conditional Expression of Interest from The Washington Corporations
20 March 2017
- Company Clarifies the Record for Shareholders
- Approach Constructed as a Highly Opportunistic “Free Option” Intended to Restrict the Company and its Multiple Paths to Value Creation
YELLOWKNIFE, Northwest Territories--(BUSINESS WIRE)--Mar. 19, 2017-- Dominion Diamond Corporation (TSX: DDC, NYSE: DDC) (the “Company” or “Dominion”) today confirmed that it has received an unsolicited, conditional and non-binding expression of interest from the Washington Corporations (“WashCorps”) to acquire the Company. WashCorps’ preliminary expression of interest is subject to, among other things, extensive due diligence, negotiation of satisfactory agreements and regulatory approvals, and is contingent on entering into discussions with Dominion on aggressive and off market terms and conditions.
WashCorps submitted a three-page, mostly boilerplate, letter to the Dominion Board on February 21, 2017. Despite the generic nature of the letter and the lack of credibility of WashCorps in the diamond industry and with public company acquisitions, the Board consulted with its advisors and then invited WashCorps to present their expression of interest to the Board at an in-person meeting of the full Board of Directors of Dominion (the “Board”), which was held on March 9, 2017.