(Reuters) – Canada’s Dominion Diamond Corp on Monday agreed to a sweetened takeover offer of $1.2 billion from U.S. billionaire Dennis Washington that will take private the world’s third biggest diamond company by market value.
U.S.-listed shares of Dominion leapt 4 percent to $14.04, while its Toronto-listed shares rose nearly 5 percent, after Dominion said Washington Companies will acquire all of shares for $14.25 per share in cash.
The offer price is 5 percent higher than the Missoula, Montana-based company’s March 19 offer of $13.50 per share, which Dominion rejected as too low. Reuters reported on Friday that Dominion was in advanced and friendly talks with Washington on a sweetened cash takeover bid.
M&G Investment Management, Dominion’s biggest shareholder with a 6.2 percent stake, supports the transaction, M&G fund manager Jamie Horvat said. “Management and the board did a very good job of maximizing shareholder value,” Horvat said in an interview.
Washington Companies, founded by industrialist and entrepreneur Washington, has mining, industrial and transportation businesses across North America.
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