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Canadian Pension Group Mulls Bid for Dominion

May 15, 2017 4:39 AM   By Rapaport News
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Dominion Diamond Corporation’s share price gained more than 3% last week following reports that the Canada Pension Plan Investment Board (CPPIB) was considering making a bid for the miner.

CPPIB is studying Dominion’s books and is one of more than five parties that have signed agreements with Dominion to access its confidential data, Reuters reported Thursday, citing anonymous sources familiar with the process.

The pension group is unlikely to make an offer on its own, and may instead give financial backing to another company with expertise operating mines, the sources said in the report. Dominion — which owns the Ekati mine and 40% of the Diavik mine — did not immediately respond to requests for comment from Rapaport News. CPPIB declined to comment.

Dominion’s stock ended Thursday 2% higher at $12.88 (CAD 17.57) per share, before rising again to close at $13.05 (CAD 17.80) per share on Friday.

CPPIB, headquartered in Toronto, also reviewed Dominion’s books in 2015, when the miner was working with Rothschild & Co., according to the same sources. Dominion had brought in the investment bank to work on efforts to help increase shareholder value, including exploring a potential sale.

This past March, Dominion dismissed an informal $1.1 billion takeover proposal from the Washington Companies. The rough producer subsequently set up a committee of directors to evaluate a possible sale. At the time, Reuters also reported that Stornoway Diamond Corporation, owner of the Renard mine in Quebec, had held merger talks with Dominion.
Tags: Canada, Canada Pension Plan Investment Board, CPPIB, Diavik, Dominion, Dominion Diamond Corporation’s, ekati, Rapaport News, renard, toronto, Washington Companie
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