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HomeNewsHay River NewsDominion shares up, US company eyeing $1.1 billion takeover

Dominion shares up, US company eyeing $1.1 billion takeover

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

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The deal was proposed by private company The Washington Co. on Feb. 21 to Dominion’s board of directors. The offer was announced by both companies last week.

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The Washington Co. is offering Dominion US$13.50 per share in cash, or $18.02 Canadian.

Shares in Dominion soared 12 per cent late last week after the company reported strong sales guidance for 2018.

Dominion expects sales between $875 million and $975 million for the year ending Jan. 31, 2018, up 62 per cent from the previous year according to the company.

The company operates the NWT’s Ekati diamond mine and owns 40 per cent of the Diavik diamond mine. In November, Dominion announced plans to move its head office from Yellowknife to Calgary sometime this year.

The mining giant expects to spend between $115 million and $140 million to grow the company in the 2018 fiscal year.

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