Finally Dominion Diamond and Washington Corp. have signed a Confidentiality Agreement which enhances the probability of receiving a formal bid from Washington Corp. for a takeover of the company.
The shares are trading near the high of the recent advance.
Text below from Scotiabank:
WashCorps and Dominion Diamond Finally Sign Confidentiality Agreement: Earlier this morning, Dominion Diamond Corp announced that the company has signed a confidentiality agreement with the Washington Corporations (among others) and have granted them access to a confidential data room. In the view of Scotiabank Senior Precious Metals Analyst Tanya Jakusconek, this is a significant positive development because it enhances the probability of DDC receiving a formal bid from Washcorps possibly at a higher valuation than the US$13.50 indicated in the original expression of interest letter. Having access to confidential data could allow WashCorps to ascribe value to projects/exploration potential for which there is minimal information in the public domain, notably the Misery Deep and Fox Deep projects, and further exploration potential on the properties. As recently as its Q4 conference call on April 13, DDC said that it had not yet come to terms with WashCorps on a confidentiality agreement, with the key sticking points being 1) WashCorps having veto power of DDC's CEO selection; 2) length of exclusivity period (45 days); and 3) terms of a standstill agreement. The terms of the executed confidentiality agreement were not disclosed and no timetable for the strategic review process was provided. DDC also provided a brief update on the ongoing CEO search, saying that the process is well underway and several qualified candidates have been interviewed, but no timetable for an appointment has been established.
Having access to confidential data could allow WashCorps to ascribe value to projects/exploration potential for which there is minimal information in the public domain, notably the Misery Deep and Fox Deep projects, and further exploration potential on the properties.
http://www.ddcorp.ca/investors/events-presentations/presentations
http://www.ddcorp.ca/investors/events-presentations/presentations
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