All Cash Bid for Dia Met
BHP Limited
3 April 2001
Release Time IMMEDIATE
Date 3 April 2001
Number 32/01
BHP ANNOUNCES ALL CASH BID FOR DIA MET MINERALS LTD
BHP Limited (BHP) today announced a cash offer of C$21.00 per share for all of
the outstanding Class A Subordinate Voting Shares ('Class A Shares') and Class
B Multiple Voting Shares ('Class B Shares') of Dia Met Minerals Ltd (Dia Met).
The BHP offer is supported by the Dia Met Board of Directors and values Dia
Met's equity at C$687 million (approximately A$897 million) on a fully diluted
basis.
Dia Met is a publicly traded Canadian mineral exploration and development
company with a primary focus on diamonds. The company's principal asset is a
29 per cent joint venture interest in the Ekati(TM) diamond mine, Canada's first
commercial diamond mine. BHP is the operator of the Ekati(TM) diamond mine and
owns a 51 per cent joint venture interest. Mr Charles Fipke and Mr Stewart
Blusson own 10 per cent of the joint venture respectively.
Acquisition of the additional 29 per cent interest in the Ekati(TM) joint
venture is strategically important to BHP and its plans for the marketing of
Ekati(TM)diamonds, including continuation of current branding initiatives, and
the development of new marketing initiatives on a larger scale than would
otherwise be possible. Given the success of Ekati(TM) diamonds in the
marketplace and BHP's own marketing efforts, a consolidation of ownership of
this asset is considered an excellent outcome.
The Dia Met Board of Directors has unanimously agreed to recommend the offer
to its shareholders and will co-operate to implement the transaction. Dia Met
has represented to BHP that it believes all of the Directors and senior
officers of Dia Met intend to tender their shares to the offer. In addition,
major Dia Met shareholders, Marlene Fipke and David Mackenzie, who together
own approximately 20 per cent of the Class A Shares and 39 per cent of the
Class B Shares, calculated on a fully diluted basis, have irrevocably agreed
to tender their shares to the offer. Dia Met has agreed to not solicit any
competing offer and has further agreed to pay a termination fee of C$20
million to BHP in certain circumstances.
The Dia Met Board initiated the auction process on 17 October, 2000 after
being advised that Mrs Fipke and Mr Mackenzie were seeking to sell their
shares in the company.
President BHP Minerals Ron McNeilly said: 'The Ekati(TM) diamond mine is a world
class asset and BHP has previously indicated its intention to expand its
presence in the diamond industry. The industry is presently undergoing a
period of consolidation and, by increasing our ownership in Ekati(TM) , BHP has
the opportunity to extract maximum value from this asset.'
The offer price represents a premium of 23 per cent on the Class A Shares and
a premium of 15 per cent on the Class B Shares based on their trading prices
immediately prior to the 17 October, 2000 auction announcement by Dia Met.
The offer will be mailed to all registered holders of Class A Shares and Class
B Shares shortly and is conditional on BHP acquiring at least 75 per cent of
each class on a fully diluted basis. The offer is subject to some regulatory
approvals, which are expected to be forthcoming.
* * * *
Further information can be found on our Internet site: http://www.bhp.com
Contact:
MEDIA RELATIONS
Mandy Frostick
Manager Media Relations
Ph: 61 3 9609 4157
Mob: 61 419 546 245
Graham Nicholls
Vice President External Affairs
BHP Diamonds
Ph: 1 604 605 8666 ext 241
Mob: 1 604 818 0997
INVESTOR RELATIONS
Dr Robert Porter
Vice President Investor Relations
Ph: 61 3 9609 3540
Mob: 61 419 587 456
Latest directors dealings
- 1 day ago Savannah Energy
- 1 day ago Buccaneer Energy PLC
- 1 day ago Savannah Energy
- 1 day ago Carclo
- 1 day ago Schroder Japan Growth Fund