Dominion Diamond Corporation has set up a team of directors to evaluate a potential sale of the company, the miner said in a statement Monday.
The committee will work with Dominion’s management team and advisors to “consider alternatives that could include the sale of the company or other strategic transactions,” according to the statement. The panel consists of company chairman Jim Gowans and fellow board members Trudy Curran, David Smith and Josef Vejvoda.
The move comes after Dominion dismissed an informal $1.1 billion takeover offer from the Washington Companies last week, claiming Washington undervalued the business, but saying it was prepared to enter discussions with the suitor. Meanwhile, Reuters reported that the miner had held merger talks with Stornoway Diamond Corporation, another Canada-based rough producer.
“While the board of directors remains confident in the company’s long-term strategic plan and the opportunity it provides to enhance value for all shareholders, we are open to exploring all strategic alternatives that are in the best interests of the company and its stakeholders,” Gowans said.
“The board is committed to maximizing shareholder value through a fair and open process, and we look forward to engaging constructively with all parties,” he added.
