Dominion Diamond may soon be on the market.
That’s according to a Bloomberg report saying the Canadian company—which owns the Ekati mine in the Northwest Territories and 40 per cent of the Diavik mine—is under pressure from Toronto-based K2 & Associates Investment Management, which holds 5.4 per cent of Dominion’s shares.
According to the report, the company’s shares have fallen 45 per cent in value since this time last year. K2 is blaming Dominion’s management, saying the stock price has suffered “excessively and unnecessarily as a result of misguided policies and missed opportunities.”
Unidentified sources tell Bloomberg that Rothschild & Co., has been retained to advise on the sales process.
In a press release, Dominion said it “actively engages with its shareholders and other stakeholders and values constructive input toward the goal of enhancing shareholder value. The group has requested a meeting with Dominion, and Dominion looks forward to an open dialogue. The company’s board and management team are committed to creating value for our stakeholders and we will continue to take actions to accomplish this goal and position the company for future growth and success.”
